The Flying Dutchman takes up residence at SpongeBob's house where he proceeds to scare, startle and surprise SpongeBob around the clock. Eventually all the spooky shenanigans grow old, and SpongeBob is no longer afraid of the Dutchman. This creates a panic for the old ghost who now fears that he has lost his scary touch. So SpongeBob decides to lend a hand and help the Flying Dutchman learn to scare people again.