With news of a kidnapping of a young boy in the papers, LIl' Bill sees a boy's face at a window. He is convinced this is the missing boy and the gang alert the police. With little proof, The Red Hand Gang are determined to take matters into their own hands. Tomboy Joanne suggests a solution to the problem and the gang decide to trail the female member of the kidnappers to their hideout...

Frankie trails the female kidnapper across town in the hope of finding the kidnappers' hideout. The woman leads him to an old deserted 'haunted' house. With the help of an old eccentric homeless man, Frankie cleverly puts the kidnappers off the scent and informs the rest of the gang of his location. With the kidnappers' ransom plan underway, the gang make attempts to enter the house...

The Gang gain entry to the old deserted house that the kidnappers are using as their hideout, and they begin to understand why it is thought to be haunted. On locating the whereabouts of the boy, the gang start to put their rescue plan into action.

The gang decide to use the 'haunted’ house to their advantage and they attempt to scare the kidnappers out of it. The kidnappers appear restless and they become aware there are more than just ghosts in the house.