Carolyn Muir, a young widow from Philadelphia, moves into Gull Cottage on the coast of Maine with her two young children, family dog, and housekeeper. Unknown to her Gull Cottage is already inhabited by the ghost of the former owner Captain Daniel Gregg, a charming but somewhat aggravating ghost who is not sure if he wants this family in his home.

A young couple on the way to their wedding get stranded at Gull Cottage for the night and Captain Gregg is beside himself at what to do with them. So he decides they must get married that night.

When antique hounds visit the cottage, Claymore tries to sell them the Captain's barometer by switching it for a replica he had made, but the Captain switches them back and Claymore is arrested for selling the fake.

Carolyn recieves a telegram from an old friend who is coming to Schooner Bay to entice her to marry him. He arrives on his huge yacht and tries his best to be charming, hoping that Carolyn will see her mistake of not marrying him in the first place and will finally make the right decision.

Captain Gregg, obviously jealous of ""her Philadelphia sailor"", has a lot of fun making Blair as uncomfortable as possible, including a scene with the lawn sprinkler that is too funny for words.

Carolyn tells Captain Gregg to leave Blair alone and to try to control his jealousy. The Captain replies that is he is not jealous nor has any reason to be, but later admits to himself and to her that he was prehaps a bit jealous of her old beau.

Blair asks Carolyn to marry him again and this time she accepts, much to his joy until she makes him realize that marriage to her would also include a a ready made family and giving up his carefree existence. He makes a hasty retreat, thankful to get away with his