Here’s my idea for a 35 years later LABYRINTH sequel. Sarah is now a successful business woman with a few divorced behind her. No kids but happy. She doesn't spend much time with her kid brother, who is now a grown man with a daughter the same age Sarah was in the first flick.
Our story starts when Sarah is guilt tripped into spending weekend with that teenage niece. They're practically strangers and don't really get on. Sarah's mind is still on work and the kid would rather be at home with her friends. Sarah tries to get on but it’s a disaster.
It comes to a head in a giant argument where the niece tells Sarah she hates her and she wishes she never had an Aunt... Next day niece is home and her aunt is gone. She asks dad where Aunt Sarah is and he feaked the fuck out. Sarah went missing when he was a baby. 35 years ago.
All history of Sarah is gone. The kid thinks she's going nuts when that night she is visited by someone we recognise. It’s HOGGLE. He tells her that when she made the wish, she transported Sarah back to the Labyrinth where she has ruled as the GOBLIN QUEEN for 35 years!
But her reign has been much worse than David Bowie's penis bulge ever was. Sarah is slowly destroying the Labyrinth and soon it will be gone. Hoggle needs the niece to come back with him as she is the only one capable of saving the Labyrinth and bringing Sarah back to reality.
So we mirror the first film just inverting who is saving who. Fun and games ensue ending in the kid solving her issues and helping Sarah with her (both in the Labyrinth and the real world) undoing all the damage done as they return to the real world...
The kid wakes the next day to find herself back at Sarah's house with everything back to normal. The kid unsure if any of it was real and if Sarah has any idea what happened when we hint that maybe she knew all along.

So yeah...

I have too much time on my hands don’t I?
I'm also thinking... 35 years later we have this dude play Hoggle.
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