When Good Ghouls Go Bad

Danny and his father James move from Chicago to Walker Falls and move in with Uncle Fred. James dreams of re-opening the family chocolate factory, while Danny struggles to adapt to the sleepy town and the new ordinary life. The move sets the emotional tone for the challenges ahead.

As Halloween approaches, Danny notices very few decorations around town, and Sheriff Ed Frady even removes the ones Danny puts up. The residents seem reluctant to acknowledge Halloween at all, and the mood of the town is uneasy. Danny feels increasingly unwelcome in Walker Falls.

Twenty years earlier, Curtis Danko, an artistic boy, was ostracized by 'normal' people. On Halloween night he was seen working on a sculpture by the light of fireflies, drawing hostility from the town’s bullies. The kiln burned through the night and Curtis died in a fire, leaving a message about a curse if Halloween returned. The tragedy convinces the town that Halloween is forbidden.

At the town meeting, James unveils his 'Halloween Spooktacular' plan to raise funds to reopen Walker Chocolates. The mere mention of Halloween makes many townspeople tremble, and some faintly whisper about the curse. The mood remains tense as Mayor Churney and residents watch, while James tries to persuade them with samples of chocolate.

The following morning, decorations appear all over town and a mountain of pumpkins lies in the town square. Uncle Fred lifts a pumpkin and proclaims 'Happy Halloween', prompting the pile to topple and crush him. The town reels from the sudden tragedy.

Uncle Fred's funeral draws a large crowd and Danny grieves for the grandfather who played a big role in his life. The family leans on each other as they come to terms with the loss in the quiet town.

Because Uncle Fred loved Halloween, the cemetery's magic revives him as a zombie, and the same magic awakens others including Curtis. The revived figures begin moving through Walker Falls, their intent unclear.

The zombies begin capturing townsfolk and herd them toward the creepy old Victorian house, chanting the ominous 'Statue' as they go. Dayna and Danny flee to warn James and Nurse Taylor, hoping to find a way to stop the threat.

Inside the house, Uncle Fred explains that Curtis may be behind the awakenings and orders the living to escape while he holds the others off. James and Nurse Taylor rush to protect Danny, but Uncle Fred, James, and Taylor are all captured by the attacking zombies.

During the gathering, Curtis reveals his sculpture and confronts Kankel, who fiercely attacks him. Curtis is torn apart, but as a zombie he pulls himself back together and scares Kankel. When the shroud falls, Curtis's statue is revealed to be Uncle Fred holding a jack-o'-lantern, exposing the truth of Uncle Fred's heroism.

Kankel confesses his guilt: on the night Curtis died, he and his bullies locked Curtis in the kiln as a prank, and the janitor accidentally started the fire. He found Curtis's corpse the next day with the statue of Uncle Fred already completed, and he lied about a curse to inflame fear. He admits that Uncle Fred's goodwill deserved the town's admiration.

Curtis thanks Uncle Fred for inspiring him and joins him, while the other zombies and townspeople begin to reconcile. Pops Kankel, the bully's father, appears as a zombie and condemns his son, signaling consequences for his actions.

Curtis bids farewell to the town and retreats to his crypt, finally able to rest. The townspeople celebrate the victory over fear and honor Curtis' memory alongside Uncle Fred, beginning to heal the rift left by years of superstition.

German investors express their love for the Halloween concept and commit to funding the reopening of Walker Chocolates within two weeks. On Halloween day, kids celebrate in costume, and Uncle Fred's statue quietly offers a final 'Happy Halloween' as his spirit dances away.