Carlton Richard Masur Davis and Eloise Mimi Kennedy Davis, owners of a gag-gift company, move with their kids Jennifer Kristy Swanson Davis, Corwin David Faustino Davis, and R.E. into a creaky old house in Lucifer Falls, New England, where a chilling welcome awaits them from a wary old man named Neil Witherspoon. He warns that the house carries a tragic history and cautions about a sinister presence known as the Boogedy Man, a legend that seems to cling to the walls as soon as they cross the threshold.
That night, Jennifer is unsettled by a strange sneezing that seems to echo through the halls, and a blue light glows from behind a doorway upstairs. R.E.’s teddy bear also goes missing, leaving the family uneasy and wondering if the stories are more than mere stories. The following morning, Jennifer begs Carlton to acknowledge the strange events, but he brushes it off, insisting that ghosts aren’t real. Later, Jennifer faints after another burst of bright light and a chorus of maniacal laughter, insisting she saw the Boogedy Man. The adults dismiss it as a prank or fear, but the children know something real is happening.
Corwin and R.E. decide to investigate further and eventually follow Jennifer into town to find Mr. Witherspoon for answers. The old man leans into the tale, recounting the legend of William Hanover, a grumpy pilgrim who fell in love with a widow named Marion. Hanover makes a fateful pact with the Devil to gain a magic cloak that grants him extraordinary powers, but the price is steep: he kidnaps Marion’s son Jonathan, and in a disastrous first spell, destroys his own house and kills himself, Jonathan, and Marion. The Davis house now sits on the ruins of Hanover’s former home. Hanover, now the Boogedy Man, and Jonathan—who died with a cold—are trapped as spirits, while Marion remains outside, unable to reach her child. The weight of that history hangs over the new home, even as the living try to settle in.
Back home, the Davis clan grapples with fear as the haunting escalates. Eloise and the children experience ghostly activity, and even Carlton begins to fear that the house might be haunted after all. They decide to ride out the night together in the living room, hoping the terror will pass. In a pivotal moment, the Widow Marion John Astin appears to Eloise outside the back door and shares her side of the story, urging them to find a way to end Boogedy’s reign. The revelation becomes clear: the key to stopping Boogedy lies in stealing away his magic cloak, the source of his power.
With the plan in hand, the family arms themselves with everyday items and ascends to the upper level, determined to confront the evil. R.E. hears a strange noise and heads toward the basement, with Corwin following close behind. In the dim basement, Corwin discovers Jonathan’s ghost, who sneezes constantly because he died with a cold. Jonathan explains that he “borrowed” the teddy bear because he was lonely, and in a moment of compassion, R.E. allows him to keep the bear for a while. Jonathan also shares stories of other families pushed out by Boogedy, deepening the family’s resolve to break the curse. Jonathan Jamie McEnnan becomes more than a voice from the past, becoming a bridge to the living.
The confrontation erupts as Boogedy materializes and launches a psychic-charge assault, turning the Davises’ gag gifts and household appliances against them. They fight back with courage and cleverness, using the very tools of their everyday life to counter the supernatural threat. A pivotal moment comes when a vacuum cleaner snags Boogedy’s cloak, tearing it away and stripping him of his magical powers. The cloak’s power fractures under the device’s grip, and Boogedy lets out one last scream before he vanishes, powerless.
As the tension eases, Widow Marion and Jonathan appear once more, their forms bright and finally reunited. The ghosts embrace before dissolving into the air, and the Davis family looks on in relief as the house seems to grow warm and welcoming again. The haunting seems to have ended, and the family breathes easier, convinced they can now live in their home without fear. Yet, a final, cheeky threat lingers in the air, as Boogedy’s voice crackles one last line: > Wanna bet?!