Hiram Otis [Rolf Saxon] travels to England on a research grant with his wife Lucy Otis [Celia Imrie], their daughter Virginia Otis [Sarah-Jane Potts] (often called Ginny), and their two sons, taking up residence in the ancient Canterville Hall. The castle is famously haunted by the ghost of Sir Simon de Canterville [Ian Richardson], an ancestor doomed to linger on the estate after his wife’s death. To compel the Otis family to leave, the ghost launches a quiet, persistent reign of terror, and locals along with the present Lord Canterville watch as previous residents flee in fear. The house’s staff, Mrs. Umney [Edna Doré], and others recount the long history of eerie activity that has chased people away.
Ginny uncovers a mysterious prophecy about the house and discovers a secret passage in the library that leads to a daytime cell where Sir Simon resides with his raven Gabriel. She and her brothers catch glimpses of the ghost, though her parents chalk it up to Ginny’s imagination. A spark grows between Ginny and Francis, the young Duke of Cheshire [James D’Arcy], who has also seen Sir Simon. Meanwhile, Hiram Otis remains a steadfast skeptic, accusing Ginny of inventing tricks to keep the family in Indiana.
Sir Simon grows frustrated by the Otises’ resilience and even pretends to frighten them with a fake specter conjured by the children. He chases the Otis kids, which draws Ginny into more trouble with her father, whose disbelief keeps him from recognizing the haunting as real. In time, Ginny uses the秘密 passage to reach Sir Simon and forms an unlikely friendship with him. Francis explains to Ginny that Sir Simon was suspected of murdering his wife, Lady Eleanor, and that his fate remains shrouded in mystery. Sir Simon appears to Ginny and warns her not to let fear ruin her chances at true love; she takes his words to heart and musters the courage to tell Francis how she feels.
Hiram, still convinced that Ginny is the source of the disturbance, decides to send her back to Indiana. To win him over, Ginny and Sir Simon stage a Hamlet-inspired scene with Sir Simon appearing as the ghost of Hamlet’s father. The performance unsettles Sir Simon, and he vanishes mid-scene, with Hiram insisting it was just a special effect—though the rest of the family suspects a genuine haunting.
Ginny learns that the lines from the play awaken painful memories for Sir Simon. He confesses that he drove his wife insane after being manipulated into believing she was unfaithful, and that Lady Eleanor ultimately killed herself. Surrendering himself to Eleanor’s family for punishment, Sir Simon is imprisoned in the cellar to starve and cursed to haunt the house by night while lamenting his wife’s death by day. He can finally rest if he is redeemed, and Ginny’s tears have begun to fulfill the prophecy; now she must pray for him. Sir Simon guides her through a fireplace portal to the Realm of Darkness to plead with the Angel of Death on his behalf.
The next morning, Hiram seeks to mend fences with Ginny, only to discover she is missing. The family, aided by Francis, the Umneys, Lord Canterville, and the locals, launches a search and finds the cloak Ginny wore in the library. Everyone realizes that the ghost has taken her. Hiram’s belief in ghosts begins to shift as he begins to hear Ginny’s voice in his mind and sees a reflection of her in Sir Simon’s portrait.
That night, a strange noise draws them to the library, where the fireplace opens to reveal Ginny struggling to return from the Realm of Darkness. Her family and Francis manage to rescue her before the portal closes. Ginny leads them to Sir Simon’s cell, where they discover his chained skeleton. Gabriel the raven disappears, and the broken chapel bell rings out a signal of change. Outside, an almond tree that had withered suddenly blossoms again, fulfilling the prophecy and signaling that Sir Simon has been redeemed.
With Sir Simon’s redemption, the Otis family decide to stay at Canterville Hall indefinitely, and Lord Canterville blesses the union of the living and the haunted. He presents Ginny with a ring that belonged to Lady Eleanor and arranges for Sir Simon’s remains to be buried in the garden beside her. Francis and Ginny visit the grave, and Ginny thanks Sir Simon for everything he taught her about life, death, and the power of love to triumph over fear. Ghostly voices are heard, suggesting that Sir Simon is finally reunited with his wife and at peace at last.
