My absolute favorite horror movie of all time is John Carpenter's "
Prince Of Darkness". There never has and never will be a horror movie that tops that flick as far as I'm concerned.
That being said, here are some other horror movies that definitely make my favorites list (naturally, I've featured a most of them on the site before in some capacity):
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Phantasm 1 & 2 (absolutely original and manages to be both funny and truly creepy)
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A Nightmare on Elm Street 4: The Dream Master (my favorite in the series)
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Halloween 3: Season of the Witch (such a fun flick and a great concept, you just gotta ignore the whole "it's not about Michael Myers" thing and accept that it's a stand-alone film)
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JAWS (sharks are awesome and any movie that manages to scare people about even setting foot in the water is aok in my book. Furthermore, Quint is one of the all-time greatest silver screen characters)
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Jack Frost (still one of the funniest horror comedies I've ever seen. Totally indie and underrated)
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Silent Night, Deadly Night (another extremely entertaining holiday horror flick that everybody should see. Punish!)
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Dark Night of the Scarecrow (a very creepy made for TV movie that gave myself and many other kids nightmares when they were younger)
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Night of the Creeps (you'll be hard-pressed to find a better movie about alien life forms infecting your brain and turning you into zombies)
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Dead Alive (screw LOTR, this is Peter Jackson's finest and most insanely gory cinematic work)
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Killer Klowns From Outer Space (cotton candy cocoons to store dead humans in? Genuis.)
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Day of the Dead (my favorite Romero flick and Bub the zombie rules)
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The Toxic Avenger (part horror, part comedy, all awesome and as indie as they come.)
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The Blob (the remake in 1989 is an absolute classic and it's extremely over the top with the gore in some scenes)