"It was a very good night for ghosts of all sizes according to the boys, not only were they attacked by the smoking green mammoth ghost but saw a whole cubby of little mini ghosts gathering around. Yes, it was quite an adventure set in the spooky old woods where the lightning flashed and the wind howled..."
–radio
During a fierce storm the Earth people find shelter in a spooky old house and before long they witness strange apparitions created by the magician named Inidu whom they befriend. Inidu has been framed for manslaughter as during one of his stage acts a volunteer died, the little people become involved in an attempt to clear his name...
Seeking shelter from a storm, the little people enter a haunted house, but soon realize the green phantoms they see are illusions, created by a magician named Inidu, who was only trying to drive off a pair of trespassing boys. Inidu befriends the Earthlings and promises not to turn them in, for he too is wanted by the police. Meanwhile, the boys' tale of their ghostly encounter makes the radio news on a local station, which brings Inidu's former assistant, Enog, to the house. When Enog arrives, he tries to poison his old mentor in order to steal his notebook containing the secrets to the magician's tricks.