Burton's theory states that psychological horror films portray protagonists coming to terms with the supernatural, depicting a battle between good and evil. The theory is demonstrated in films like The Blair Witch Project where students filming in the woods go missing, The Grudge where an American nurse encounters a deadly spirit in Tokyo, and The Sixth Sense where a child psychologist helps a boy who sees dead people. These films feature protagonists isolated in scary settings like woods or abandoned buildings, creating fear of the unknown and hope that the protagonists can overcome the supernatural threats they face.