After Nancy and her girlfriend, George, see an automobile run off the road. Nancy tells her boyfriend, Ned Nickerson, to report it to the sheriff. Later the sheriff tells Nancy that his men could not find any signs of an accident, and that the road has been closed for a long time. Nancy attempts to unravel the bizarre occurrence on her own, and soon finds herself in the midst of danger.

The stage is set for mystery when Nancy and her friends decide to produce a 20 year old play in order to raise money for a youth center. The play is to be presented at the allegedly haunted Palace Theatre. When members of the original cast arrive in town, strange events begin to occur both onstage and off. Nancy must figure out why the actors have come together to appear in her modest production, or the drama might just end in real life tragedy.