Adam is the new kid in Spooksville. The town seems to be a magnet for the supernatural, with laid-back Adam the new interface between normal & paranormal. Guiding him in this parallel world are his new friends Sally & Watch.
Sally has a horrible dream and can't sleep, leading a concerned Adam and Watch to check on her and discover her being dragged into the closet by a gigantic fear eater who feasts on people's nightmares.
It is Halloween in Spooksville. Adam and a reluctant Sally and Watch are out trick or treating and when they see a young boy pulled into an abandoned house by an unseen force, are forced to investigate the strange occurrence.
Adam, Sally and Watch explore a young boy's bizarre disappearance and must rescue him after the ghost of the former lighthouse keeper, Mrs Murray, traps him believing he was her son who was washed out to sea.
Adam, Sally & Watch find the map to the Secret Path in Ann's house. When Adam inserts the stone eye from his old childhood teddy bear into a statue of a raven, they find themselves transported back to 1771.