Steven Spielberg produced this live-action feature starring the friendly ghost created in 1940 by Joe Orolio. In it, greedy heiress Carrigan Crittenden inherits the haunted Whipstaff Manor and discovers that the house contains a treasure, which is closely guarded by three nasty ghosts. She invites ghost therapist Dr. James Harvey, and his daughter Kat, to move into the eerie mansion and get rid of the supernatural creatures.

The nephew of the three spirits is Casper, a friendly ghost who becomes Kat's pal. Casper takes Kat to his father's secret lab where he once attempted to bring Casper back to life with a special machine. Carrigan eavesdrops on their conversation and decides to become a ghost herself, in the hope that she will get the booty more easily. Then she can use the machine to change back to a human. However, Carrigan doesn't realize that you can't flirt with the afterlife.