After the scare at Lavender City, Ash goes to challenge Sabrina. However, he sees Haunter disappeared and runs away, as Misty and Brock have turned into dolls. Going back, he sees Haunter disappeared once more, so Pikachu goes to battle Kadabra instead. Haunter, however, goes to Sabrina herself, wanting to show her something...
Ash, Misty, and Brock have returned to Saffron City with Ash's new Pokémon, Haunter, who will hopefully help him win aganist Sabrina. Ash is feeling confident. Brock is a little bit afraid of Haunter but Misty isn't. Misty gives Haunter a hug and Haunter licks her face, paralizing her. Ash scolds Haunter and its cries, but Ash cheers it up. Ash asks Haunter to help him defeat Sabrina and Haunter agrees.
Ash and his friends return to the Saffron City Gym. Misty, Brock, and Pikachu don't want to go in because of what happened last time. Ash thinks he will win, but Brock thinks Haunter is controlling Ash. Haunter isn't and laughs continuously. Ash brings out Charmander, Squirtle, and Bulbasaur to cheer him on. They all return to the stadium and Ash demands a rematch. Sabrina agrees and she brings out Kadabra. Ash tries to sends out Haunter, but Haunter has disappeared. Sabrina gets mad and tells Ash to sends out another Pokémon or he will return to the toy box. Ash tries to send out Pikachu, but it backs away, too scared to fight. Ash's other Pokémon act the same way. Sabrina becomes furious as Ash and his friends try to leave. The little girl appears and seals the exit. She then turns Misty and Brock into dolls. The man who helped Ash before appears and teleports him out of the Gym safetly.
They appear in the city and they all land on top of the man. The man tells Ash and his Pokémon that Sabrina wasn't always this way. Flashbacks happen and they show Sabrina as a little girl, using telekinesis on everything and also ignoring her parents. Because of this, it made Sabrina split into two people, the trainer and the little girl. The little girl is actually a doll representing what Sabrina looked like before she started practicing telekinesis. Ash notices that the picture the man shows him is the same one he saw in the toy box. The man thinks Ash has figured out that he is Sabrina's father but Ash thinks that he is just a photographer. Sabrina's Father asks Ash why he doesn't have a ghost Pokémon with him. Ash tells him that Haunter disappeared. Sabrina's Father tells Ash that they only way to save Misty and Brock is to find Haunter and defeat Sabrina.
While Ash and Pikachu look around the city for Haunter, Team Rocket is standing on a skyscraper. James prepares a fishing net to catch Pikachu with. Haunter appears in front of them, freaking them out because they are sick of Ghost Pokémon. The fall off the skyscraper and Jessie clings to the side of the building while James and Meowth hold on to her. Jessie can't pull them up because they are too heavy. Haunter makes funny faces at Jessie trying to get her to laugh. Jessie tries not to laugh because if she does, she will let go of the side of the skyscraper. She soon starts laughing and she lets go of the building. They fall and make a big crater in the sidewalk, right next to Ash and Pikachu. Haunter appears next to them. Ash wants to go back to the gym, but Haunter doesn't want to fight. Haunter has a plan, and they go back to the gym to try it out.
Meanwhile, Misty and Brock, as dolls, are sitting on a couch in the toy box. They see another doll close by and the doll tells them that she is Sabrina's Mother. Misty and Brock are shocked when Sabrina's Mother says that there's still some good left in Sabrina. Sabrina opens up the top of the toy box and looks down at them. Misty demands for a battle and to change them back. Sabrina refuses to however.
At that time, Ash comes back to the gym and asks for a rematch. Sabrina sends out Kadabra. Ash tries to send out Haunter again, but once again, Haunter has disappeared. Ash collapses, thinking he will be thrown back into the toy box when Pikachu steps up, wanting to battle. Ash gains his confidence back and the battle starts. Pikachu uses Thundershock, but Kadabra avoids it by using Teleport. Kadabra uses Psybeam to hit Pikachu badly. Pikachu uses Thunderbolt, knocking out Kadabra. Ash thinks he has won when Kadabra uses Recover. Haunter then appears in front of Sabrina and tries to get her to laugh. The little girl/doll says that two aganist one is unfair. Sabrina's Father appears and says Haunter is acting by itself, so it is fair. Haunter makes funny faces and pulls out a bomb and it explodes right in front of Sabrina. Sabrina then starts laughing. Sabrina's Father is happy Sabrina is not so focused on her psychic powers anymore, but Ash isn't happy because he thinks he didn't win fairly. Sabrina's Father says Kadabra is unable to battle because it is laughing so hard since Kadabra and Sabrina's minds are connected telepathicly. The little girl/doll disappears, dropping Kadabra's Poké Ball and Misty, Brock, and Sabrina's Mother are changed back. Sabrina's Father says Ash has won the battle.
Ash, Misty, and Brock leave Saffron City and Haunter decides to stay with Sabrina. Ash plans to head to Celedon City next. Team Rocket is still in the crater, covered in concrete, but they still manage to blast off.
- The book Night in the Haunted Tower is based on this episode.
- The Marsh Badge that Ash earns in this episode is his fourth badge. However, from the traditional sequence of gyms, the Marsh Badge is officially the sixth badge that the player earns in the games. However, this is only because the player cannot access Saffron City until a later point in the game, and there was no "road block" in Ash's way.
- The origin story of Akiza Izinski, a character from Yu-Gi-Oh! 5D's, is nearly similar yet longer than the origin story of Sabrina, as both girls have psychic powers and bad childhoods.
- Lisa Ortiz provides the voices for both Sabrina and her mother.
- The "Who's that Pokémon?" in this episode is Haunter.
- In the episode, Jessie says that Albert Einstein invented the light bulb, when in reality it was Thomas Edison.
- In one scene, Charmander's stomach is orange instead of white.
- When Ash decides to battle Kadabra, his eyes turn hazel colored.