On Halloween, 9-year-old Frankie Scarlatti is locked into the school cloak room by school bullies Donald and Louie. Later that night, Frankie witnesses the murder of the ghost Melissa Anne Montgomery by a darkened figure. The figure strangles Frankie, but Frankie lives and is soon found by the police.
Soon, all Frankie can see is the ghost of Melissa and he befriends her. Frankie tries to figure out the identity of the killer before they can kill again, to return Melissa to the ghost of her mother, and bring solace to the mysterious Lady in White who roams the town he lives in.