Cindy is playing by the ocean with her younger brother, Neil, when a ghost appears out of nowhere and grabs the little boy and carries him away. Cindy tries to tell people what happened, but everyone assumes that Neil drowned. Cindy is left heartbroken, with no one to help her find her brother.

Until Sally reads about what happened. Sally believes in ghosts--and she knows there are plenty of them to be found in Spooksville. With Adam and Watch, Sally goes to Cindy and promises to help get her brother back. But what none of them knows is that this ghost is a very nasty one--and she'd rather turn them all into ghosts than return Neil.