Framed for stealing some pearls while staying at the country home of her aunt and uncle, Mr. and Mrs. Dennison, Delsie O'Dell is banished from their house. Delsie along with her bulldog, Violet, follows Oscar, the actual thief, to an old haunted house, which is the hideout for a gang of thieves. A series of humorous escapades follows as she first hides from the thieves, then pretends to be a ghost, terrorizing them. Eventually she retrieves the pearls, clears her name, and is safe once again in the arms of Bill, Dennison's secretary.

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