The baby ponies are staying in Paradise Estate for the night, as the nursery just got a fresh coat of paint. After they've been sent to sleep, however, a ghost appears and sends them into a panic, which draws Megan and Molly to investigate just after the specter has left. Megan dismisses the matter as just a trick of the baby ponies' imaginations, until the ghost reappears later that night in view of Molly, who was staying with the baby ponies.
Convinced of the ghost's reality, the residents of Paradise Estate decide to search their home for the haunt. Numerous mishaps ensue as the ponies repeatedly scare each other and Spike sets off the traps Danny lies to catch the ghost. These all appear to be unneeded, though, as the specter manifests again in front of the assembled crowd as the episode ends.
This episode contains examples of:
- Arbitrary Skepticism: Megan calms the frightened Baby Ponies with the assurance that monsters exist only in their imagination — in a world where witches, unicorns, dragons, and magic are real.
- Bat Out of Hell: To scare the baby ponies, the ghost turns itself into a fearsome bat larger than they are.
- Ghastly Ghost: The ghost that chases the ponies around the Estate is monstrous and actively malevolent.
- Not Now, Kiddo: Downplayed. Megan plainly doesn't believe the baby ponies' claim that there's a ghost around, chalking it down to their imaginations, since it left the room right before she entered and she just saw what looked like the aftermath of a pillow fight. She changes her mind when Molly sees it too, and she witnesses it herself later on.
