The Thompson Family consists of Donald, Margaret, and Nancy. They are the most prominent family in A Nightmare on Elm Street and the most recognizable in the series overall.
Donald & Margaret Thompson
Donald(John Saxon ) and Margaret(Ronee Blakley ) married in the late 1950s. In the early 60's Donald joined the police force. In 1966 they had their first daughter, Nancy(Heather Lagenkamp ). In 1968 a child-killer named Freddy Krueger was released from prison on a technicality. A group of angry parents who had lost children to Krueger, Donald & Margaret included, tracked him down and killed him for revenge. In the early 1970's Donald & Margaret divorced. Nancy stayed with her mother. By 1981 Donald reached the rank of lieutenant on the police force and Margaret had been killed by Krueger.
(July 6'th, 1965-February 27'th, 1987 in Springwood, Ohio) is the heroine of the first A Nightmare on Elm Street film. She also reappeared in the third, and to some extent the seventh. In the Nightmare series mythos, Nancy was the first character to defeat Freddy Krueger in the dreamworld. As explained in the 1984 film, a vigilante mob - including Nancy's parents - executed Krueger in an arson attack after the child-killer was released from prison on a technicality. By means not explained until the sixth chapter in the Nightmare series (Freddy's Dead), Krueger returns in a supernatural form to get revenge on the town.
In 1981 Tina Grey, Nancy's friend, was murdered. Donald arrested Rod Lane as he was the primary suspect. While incarcerated Lane was murdered by Krueger. However, Krueger had killed Lane in such a way that it appeaered as if he had commited suicide. Upon hearing about his "suicide" Nancy tried to inform her parents that it was, in fact, Krueger who was responsible and that he lived in the dreams of the Elm Street children.
After Nancy's unrelenting attempts to cnvince her parents Margaret took Nancy to a sleep research facility. While in induced sleep Kruger almost succeded in killing Nancy but only leaving a bad cut on her arm instead. After returning home with Nancy Margaret barred the windows and locked the doors to prevent nacy from leaving the house. Later, apparently drunk, Margaret takes Nancy down to the basement where she reveals the truth about Freddy Krueger to her. In a deleted scene, Marge reveals to Nancy that she wasn't always an only child. Her, along with Tina, Rod, and Glen, each had an older brother or sister that was killed by Krueger when he was alive.
Margaret assures Nancy that Krueger cannot hurt her, or any of the other Elm Street children, because she and the other Elm Street parents had burned him alive.Shortly after Lane's murder Kruger murdered Nancy's boyfriend Glen Lantz, who had lived across the street from Nancy. Donald was dispatched as part of the investigative team. Nancy, seeing her father arrive across the street, phoned him asking for help to catch Freddy. Donald waringly promised he'd help.
When he saw smoke coming out of his former home he rushed across the street and inside. As the police and Donald went upstairs, they saw a burning Krueger (a result of one of Nancy's boobytraps set up to kll Freddy) trying to strangle Donald's ex-wife Margaret. Donald tried to save her but it was too late and she burned to death. Despite this Nancy did defeat Freddy. Soon afterwards Nancy ended up in a psychiatric clinic.
After Nancy's release in 1984 Donald didn't speak much with her. He became an alchoholic and could hardly do his police duty. In 1987 he heard about a series of deaths in the Westin Hills Asylum, where Nancy worked. By this time he had lost his job at police department and was currently a security guard. After figuring out that Krueger had returned and was behind the clinic deaths Nancy and Dr.Neil Gordon came to Donald to ask him where Krueger's remains were lackadaisically buried so that they could destroy him once and for all by placing his remains in a cosecrated grave. At first Donald wouldn't tell them where his remains were and Nancy had to rush back to the clinic to save Kristen who was put into induced sleep.
Dr.Gordon eventually persuaded Donald to take him to the burial site. Once arrived at the brurial site, a junkyard, Donald and Dr.Gordon dug up the remains of Krueger. Once unearthed Krueger's skeleton rose from it's grave and attacked Dr.Gordon. Donald tried to attack the skeleton of Krueger but was thrown aside and impaled through his heart on a metallic tube. Shortly after the death of Kristen, we briefly see Donald's grave beside his Nancy's, Kincaid's, and Kristen's in a cemetery.
In the afterlife
In the Nightmares on Elm Street comic miniseries by Innovation Publishing, set between the events of A Nightmare on Elm Street 5: The Dream Child and Freddy's Dead: The Final Nightmare, Donald appears; the series reveals that ever since his death, Donald has been trapped in Freddy's realm, constantly tortured by him and unable ascend to the afterlife. When Freddy inacts a complex scheme to break through to the real world, he forces Donald into working for him, promising to allow him to die completely in exchange for killing Nancy.
Encountering Nancy when she enters Freddy's world, Donald, on the verge of tears and begging for forgiveness for all he's done and what he is going to do, shoots her in the head. Donald's attempt at killing Nancy fails, due to her having become a being similar to Freddy; despite his attack on her, Nancy forgives Donald and finally ends his suffering by using her power to free him of Freddy's hold and allow him to ascend, after he leads her to Freddy's central lair.