STEVE FILES and SINGER his talking Beagle are budding paranormal investigators. They investigate paranormal occurrences in their hometown of Everly. Steve is at first quite skeptical about finding any ghosts or spirits. He is a building contractor by trade and started investigating the paranormal at Singer's request.
While investigating MARSHA WOOL'S Victorian mansion, a glowing orb of light appears in her basement. Steve is out of his league and asks the help of his longtime friend and neighbor DOYLE, who is a reluctant medium. Doyle must educate Steve about the paranormal as quickly as possible for he fears Marsha may be possessed.
A mysterious stone obelisk appears in Marsha's yard that was witnessed by JEFF and EUGENE, two grey squirrels, that run a message delivery service. Doyle and Steve are given hasty advice on how to deal with the mystery stone and accidentally burn down Marsha's house in the process. A large crater opens swallowing most of the property causing a pressure ridge to form in the town cemetery.
Doyle calls his brother JIM, also a medium, and arranges for PAT a professor to come to their aid. Now armed with the correct information to use on the stone obelisk, danger is temporarily curtailed. Marsha is now free of possession.
Pat is tasked with deciphering the origins of the markings on the stone, a field in which he is an expert. Doyle and Steve along with Marsha and Singer must contend with the damage that has been unleashed on their town. Doyle calls the demon the SCRATCH and has fought him in the past. The Scratch is back and on the loose and must be dealt with once and for all before he destroys the entire town.