In the magical town of Wispwood, inhabited by fantasy beings, Lily, Theo, Ella, and Noah embark to solve two mysteries. First, they investigate the hauntings at Lady Spindle’s house. The magical ghosts of the forest are suspected to be the culprits, breaking an ancient treaty. At the same time, they pursue the long-lost treasure of pirate captain and town founder, Levi Finneas. The four friends follow clues that lead them to different locations and districts around their magical town. As tensions rise between those blaming the ghosts and those defending them, suspicions fall on the new teacher, Miss Sophia, who has a motive for revenge. Her parents died in a tragic accident involving the ghosts during an old town festival. However, as the deadline for the ghosts' banishment arrives, the friends piece together the clues to discover that Mr. Bramble, one of their teachers, is the true culprit behind the hauntings. Motivated by personal reasons, Mr. Bramble sought to find Captain Finneas’s treasure— believing it to be at Lady Spindle’s house— while seeking revenge for old injuries. The friends expose his guilt, clearing Miss Sophia of suspicion and proving the ghosts’ innocence. While the town celebrates, the kids locate the hidden treasure and, despite challenges, successfully solve both mysteries. Returning to school, the four friends have forged a strong bond through their holiday adventure and eagerly anticipate the new term.