The story begins at a spooky haunted house. A scared fairy woman frantically runs from an skeleton ghost fairy in torn old lady clothing. She goes to hide in a room and locks the door. However, the ghost floats through the door and corners her inside.

Fairy woman: "Grandma! No!" (screams as the ghost attacks her)

The screen pans out to reveal it is just a scary horror movie Ripto is watching from his TV.

Ripto: (laughs) "Get her, Grandma!" (laughs as he gets covered in a blanket) "I'm the ghost of Ripto! Wooo!" (trips over the sofa's armrest, removes his blanket and a lightbulb lights up above him) "Hey, that gives me an idea." (turns off the TV and gets out a chalkboard to make the blueprint of his plan) "Hmm, if I were a ghost, I would scare Spyro and his friends and then then rule Avalar with an iron fist!" (laughs evilly, then concerned) "But where am I going to scare that miserable dragon and his troublesome friends? Crush! Gulp!"

Crush and Gulp appear.

Ripto: "Bring me the crystal ball."

Crush and Gulp went to get the crystal ball for their boss.

Ripto: "And don't drop it either!"

Meanwhile, a group consisting of Spyro, Sparx, Hunter, Elora, Bianca, Sheila, Sgt. James Byrd, Bentley and Agent 9 is passing by the local cemetery.

Sheila: "Look, mates, we're passing the boneyard."

Bentley: "Hurry up, you guys! This place gives me the creeps! It's full of dead people!"

Agent 9: "Well, you might as well get used to it considering that we'll probably all be buried here someday."

Bentley: "Okay, maybe, but that won't happen for a long long time, right?"

Sgt. James Byrd: "Unless we wind up like up like the Phantom Slasher."

Spyro: "The Phantom Slasher? Who's that?"

Elora: "You mean you've never heard the sad, tragic, horrifying tale of the Phantom Slasher?"

Spyro: "To be honest, me and Sparx have never even heard of it in the first place."

Sparx: "Yeah."

Bianca: "Go ahead, Hunter, tell the story."

Hunter: "It all started many years ago back in the Middle Ages."

The scene shifts to a wizard holding his spell book and going to his cottage in the woods.

Hunter (voice-over): "The Phantom Slasher used to be a wizard. In fact, he was the clumsiest one in a wizards council. His fondest dream was to become the greatest and most powerful wizard ever lived."

The wizard then casts his spell on a sword.

Hunter (voice-over): "And then, one night, when he was casting a spell on a sword ...it happened. The sword went haywire and it cut off both his hands by mistake."

The sword suddenly went haywire, just like Hunter said, and slices both of his hands off, making him scream in agony as they bleed. The scene switches to the wizard with hooks replacing the hands he had lost as he looks unhappy.

Hunter (voice-over): "And he replaced his hands with a pair of rusty hooks. Ever since that day, he's been constantly made fun of for his "new hands" and it made him sadder and sadder."

Suddenly, he bumped into a fairy and slashed her face by mistake making her scream in agony.

Hunter (voice-over): "And then, he accidentally slashed a fairy's face! And...after that horrying incident, his council fired him!"

Later, at the wizard's cottage, he goes to his closet and gets a black robe and cloak.

Hunter (voice-over): "That night, the Phantom went to his closet and put on a robe and cloak. He went down to the basement and found his spell book and a big, sharp axe."

The wizard, dressed in black, goes to the basement and finds his spell book and an axe as he smiles evilly. The scene switches to him walking out of the woods and into a castle where his former council members lived.

Hunter (voice-over): "He walked to where his former council members are and casted a sleeping spell on them."

The scene cuts to him in front of several sleeping wizards as he approaches them.

Hunter (voice-over): "The sleeping spell had succeeded and made all his former council members alseep, giving him a perfect change...for his bloody revenge; they never saw the terrible event coming!"

The wizard raises his axe for the attack as lightning flashes. Then, he goes to attack his victims, only for the scene to cuts to black as violent, hacking and slashing sounds were heard. The scene switches to two knights coming to the castle.

Hunter (voice-over): "When a pair of knights came, they found him sitting in a throne next to the bodies, flipping the pages on the spell book, and smiling, while he lets out a sinister chuckle."

Just as Hunter said, the knights arrived to see the wizard sitting in a throne with the bloody corpses of his former council members, flipping pages on his spell book, letting out a creepy smile and chuckling sinisterly, much to the knights' shock.

Hunter (voice-over): "Then, in horror, they could only watch as he jumped from throne and leaped out the window, resulting in his demise!"

The wizard grabbed his axe and his spell book, jumped from the throne and jumped out the window, causing him to fall. When he fell, his swept-up ax embeds itself in the wizard's head.

Hunter (voice-over): "And so he said with final breath, "Every year, I'll return from death, and whoever enters this castle when he's around, cowardly blood will stain the ground!" A curse passed down until this day."

The knights become horrified as they watched the wizard die. One of the knights writes down the curse and holds it in hand, nodding to the other knight. At the cemetery, several gravediggers were burying the wizard's corpse, in a coffin, in a grave where the tombstone said "R.I.P. Here lies Master Xavior Zedd; he lived his life and went sick in the head".

Hunter (voice-over): "They buried him, in his darkest attire, right here, in this very cemetery."

At present day, Hunter continues telling the story, terrifying his friends.

Hunter: "And every year, on the anniversary of his gruesome deeds, his ghost rises from the grave and wanders around among the headstones, looking for more victims. Speaking of which, the anniversary of the horrible murders is tonight!"

Spyro, Sparx, Elora, Bianca, Sheila, Sgt. James Byrd, Bentley and Agent 9 gasped in shock, a sheep bleat as it stopped prancing, several dragons gasped as they stopped flying, Gnasty Gnorc gasped as he was about to eat his chicken and all the flags stopped waving.

Hunter: "Ever wonder if he'll actually appear? Oh, he'll be coming."

Spyro: "How will we know?"

Hunter: "There are three signs that signal the approach of the Phantom Slasher. First, mysterious balls of light will flicker on and off. Next, the bell will tow and there will be nobody there. And finally, an eerie fog arrives and the Phantom Slasher bursts out of his grave, clad in ghostly white with blood red eyes. Then he exits the grave, gets out his spell book and his axe out of his head with his hooked hands because he's already dead! And you know what he does next?"

Sparx: "What?"

Hunter: "You really want to know?"

Spyro: "What?"

Hunter: "Are you sure you want to know?"

Spyro: "What, what, what does he do?!"

Hunter: (sneaks up on Spyro, taps him) "He gets ya!"

Spyro and Sparx: (scream) "Hunter!"

Hunter: "What? It's just an urban legend. But if it was real, I'll teach that old specter not to mess with us while I'm around!"

Elora: "The only way we know for sure is to be here when it gets dark."

Sheila: "Let's all meet here at sundown to see if that old Phantom Slasher comes out."

Agent 9: "Okay."

Bentley: "I'm scared."

Bianca: "You don't have to go, Bentley."

Bentley: "Yes, I do! If I don't, I'll be chicken!"

Sgt. James Byrd: "Then, it's settled. See you around."

The screen pans out to reveal Ripto watching the whole thing from his crystal ball.

Ripto: "So, the old cemetery, eh? We'll see about that."

He goes to his wardrobe and takes out a white robe, he goes to his closet and takes out a white bedsheet and he grabs some chains.

Ripto: "So, they want a ghost, eh?" (gets his sceptor) "I'll give them a terrifying ghost!" (laughs evilly)

Later at sunset, at the cemetery gates, Spyro, Sparx, Hunter, Elora, Bianca, Sheila, Sgt. James Byrd and Agent 9 are there.

Sheila: "We're all here except for Bentley."

Bentley appears, crying in fright.

Bentley: "I'm here. I'm scared and we're all gonna die, but I'm not chicken!" (goes through the cemetery gates)

The others did the same thing.

Spyro: "I wonder if there really is a Phantom Slasher."

Bianca: "I hope we don't end up like his former council members."

Elora: "I agree with you, Bianca."

Then, Ripto, who is dressed as a ghost, appears, laughing evilly as Crush and Gulp come with him.

Ripto: "Crush, Gulp, I'm going in. Your job is to lock the gates so that Spyro and his friends don't escape! Don't screw it up!" (enters the cemetery)

Gulp closes the gate and Crush takes out the chains and locks the door behind their boss. Gulp looks at Crush in confusion and Crush shrugs. The scene switches to Spyro, Sparx, Hunter, Elora, Bianca, Sheila, Sgt. James Byrd, Bentley and Agent 9 in the cemetery, checking out the wizard's gravesite.

Spyro: ""R.I.P. Here lies Master Xavior Zedd; he lived his life and went sick in the head". Wow, that must be his name when he was alive."

The group see an owl fly by.

Agent 9: "Well, the sun's down."

Hunter: "That's right. It's after sunset and there's no Phantom Slasher, right?"

Agent 9: "Right, there's no ghost here."

Sgt. James Byrd: "I suggest we prove there's no Phantom Slasher and go home. What do you say, guys?"

Everyone else agrees. Then, they go to the cemetery gates, only to see that it's locked.

Bianca: "It's locked!"

Hunter: (scared) "It's the Phantom Slasher! He did it! He's already picked us for his next victims!"

Sparx: "Hey, I thought you weren't scared!"

Hunter: "Not until now!"

Bentley: "We're all gonn die! He's gonna hack us to pieces with his big bloody axe!"

Elora: "Bentley, take it easy! A guard must've locked it!"

Spyro: "Elora is right, why don't we all just cross the cemetery into the north gate and see if that's open."

Everyone else agrees, except Bentley, and went off.

Bentley: "Somebody carry me?"

Later that evening, we see Spyro, Sparx, Hunter, Elora, Bianca, Sheila, Sgt. James Byrd, Bentley and Agent 9 walking through the tombstones.

Bianca: "Man, this place is even creepier at night."

Sgt. James Byrd: "Yeah, it's like a ghost town in here." (lights start to flicker on and off) "Very funny, Hunter."

Hunter: "What?"

Agent 9: "And mysterious balls of light will flicker on and off." Just like the story. We get it."

Bentley: "Uh, guys, I don't think it was Hunter."

Sheila: "What makes you say that?"

He points at mysetrious balls of light flickering on and off, making the group gasp.

Hunter: "What's next? The bell will tow and there will be nobody there?"

The bell tows.

Hunter: "Oh no, calm down, calm down. All right, what was it? There was the lights..."

The balls of light flicker on and off.

Hunter: "...and the bell..."

The bell tows.

Hunter: "...and someone just stepped on my tail!" (looks at Bentley with his foot on his tail) "Bentley!"

Bentley: "Sorry, I have big feet." (gets his foor off of Hunter's tail)

Spyro: "But what was that third thing?"

A ghostly fog appears.

Sparx: "Uh-oh. Then, that means..."

Hunter: "It's the third sign to signal the Phantom Slasher! He's gonna get us like when he hacked his former friends to pieces! He's out there just waiting for us!"

Spyro: "It can't be real, can it? There's gotta be a rational explaination!"

Behind Spyro, a ghostly silhouette appears standing on top of a grave, moaning eerily and holding a book on one hand and an axe on the other, much to Spyro's friends' horror.

Bianca: (points at the silhouette) "It's him! It's the Phantom Slasher!"

She and the others, except Spyro and Sparx, scream and run away while Spyro and Sparx stare in horror. The "Phantom Slasher" raises his scepter like a sword in a menacing state, causing Spyro and Sparx to scream as they fled. The "Phantom Slasher" then turns into Ripto, who is still disguised as a ghost while the "axe" was just his scepter.

Ripto: (laughs evilly) "Who's scared now?"

Spyro and his friends run passed the tombstones, screaming. Then, they see the north gate, which is open.

Spyro: "Look! It's open!"

Suddenly, the gate is closed and locked.

Hunter: (screams) "It's the Phantom Slasher! He locked us in so he cn stalk us and hack us to pieces!"

Elora: "Calm down, Hunter. There's gotta be some reasonable explanation."

Hunter: "Yeah, like he locked us in so he can hack us to pieces!"

Agent 9: "That doesn't sound very reasonable to me."

The gate shakes, much to he group's horror, making them run away, screaming. Ripto is seen, shaking the gates.

Ripto: "Good thing Crush and Gulp helped lock the north gates!" (laughs evilly)

Spyro, Sparx, Hunter, Elora, Bianca, Sheila, Sgt. James Byrd, Bentley and Agent 9 are at the center of the cemetery as Bentley cries.

Hunter: "He's up there just waiting for us...waiting to chop us into little pieces!"

Spyro: "Don't worry. All we have to do is come up with a plan to get out of here."

Bentley: (still crying) "We're all gonna die!"

Elora: "It's okay, Bentley."

Bentley: "No, it's not!"

Suddenly, they heard Ripto moan eerily.

Sgt. James Byrd: "It's him! He's coming with his big, bloody axe!"

Ripto, in the form of the "Phantom Slasher", appears on top of the tombstone and Spyro and his friends scream and horror and run away. Ripto turns back to normal in his ghost costume.

Ripto: (laughs evilly) "This is the most perfect! What a bunch of suckers! What a bunch of dopes!" (gets off the tombstone) ""Phantom Slasher". Pfft. Only an idiot would believe there's really such a thing as the Phantom Slasher. I really should stop. But I'm having too much fun." (walks off) "Ha. It's almost too easy."

The scene switches to Spyro and his friends running in terror from the "Phantom Slasher".

Sgt. James Byrd: (points at a tomb) "In here!"

The group takes shelter in the tomb and Agent 9 and Sgt. James Byrd close the doors.

Agent 9: "This really bites!"

Spyro takes the shovel and puts it there to lock themselves from the "Phantom Slasher".

Bianca: "Do you think he saw us?"

Spyro: "No, we're safe for now."

Sparx: "Look. There he goes."

They see the "Phantom Slasher" walking by, moaning, only to come back, circling the tomb.

Hunter: "He's not leaving! I think he knows we're in here!"

Spyro: "Maybe not. We just gotta wait until he goes away and then we can get out."

As time passed, Sgt. James Byrd checks the door, to see that the "Phantom Slasher" had left.

Sgt. James Byrd: "I can't see him. Maybe he left."

Agent 9: "Yeah, maybe he went off to hack somebody else to death."

Bentley: "I hope so."

Hunter goes to check the back window, only to see the "ghost" is still here.

Hunter: "He's still out there."

Spyro: "Well, maybe some of us should try and find a way out. Who's with me."

No one respond.

Spyro: "Okay then, me and Sparx will go." (to Sparx) "Come on, Sparx. Let's go."

Bianca: "What? Don't be crazy, Spyro!"

Sheila: "The Phantom Slasher will get you and hack you up just his former friends!"

Spyro: "Look, we have to do something. We can't just stay in here forever."

Sparx: "He's right."

Bentley: "Sure we can. These guys did." (points at the skeletons in the coffins)

Elora: "But they're dead."

Hunter: "What's your point?"

Spyro: "We're going out there to try and find a way out of the cemetery. When we find it, we'll come back for you."

Elora: "I'm going with you."

Spyro: "You don't have to."

Elora: "I know, but to tell you the truth..." (whispers to Spyro) "...being in here with all these dead people is kind of freaking me out."

Spyro and Sparx smile and the former takes the axe out. Then, Spyro, Sparx and Elora went out of the tomb to find a way out of the cemetery. Suddenly, they see a figure in the distance and hide behind the bushes.

Elora: (gasps) "It's the Phantom Slasher!"

Spyro: "I'm not so sure."

They see Ripto, disguised as a ghost, passed by.

Ripto: "There's just no sport in it." (uses his magic to take the form of the Phantom Slasher)

The disguised Ripto then walks off as Spyro, Sparx and Elora follow him. The "Phantom Slasher" heads to the tomb and opens the door as Hunter, Bianca, Sheila, Sgt. James Byrd, Bentley and Agent 9 stare in horror.

"Phantom Slasher": (eerie tone) "I'm the Phantom Shasher!"

Hunter, Bianca, Sheila, Sgt. James Byrd, Bentley and Agent 9 scream in horror.

Hunter: "Well, I guess this is the end, guys."

Bentley: "I don't wanna die."

Biance, Sheila, Sgt. James Byrd and Agent 9: "Us too."

Hunter: "I think it's time to start screaming again."

Hunter, Bianca, Sheila, Sgt. James Byrd, Bentley and Agent 9 scream again as the "Phantom Slasher" tried to attack them, only to get headbutted by Spyro.

Spyro: "Nobody attacks my friends and gets away with it!"

Ripto lets go of the book and his scepter and reveals himself to be in his ghost costume.

Ripto: "OW! I mean..." (lets out a ghostly moan) "Wooooooooooo!"

Spyro: "Hold it right there! The masquerade is over, shorty!"

Ripto: "It's Ripto!"

Hunter, Bianca, Sheila, Sgt. James Byrd, Bentley and Agent 9: "Ripto?!"

Ripto: "Uh-oh."

Sheila: "I can't believe you pulled such a dirty trick!"

Hunter: "I can't believe how ridiculous you look in a Halloween costume!"

Ripto: (growls) "I should've known when I was exposed that a purple drgon would interfer with my plans! Okay! It was a dirty trick! I admit it! I was the Phantom Slasher! I was only scaring you so that I would take over Avalar! And I would've gotten away with it if it weren't for that meddling dragon! IT'S NOT FAIR!"

Spyro: "I say we lock him in the crypt and leave him here!"

Ripto: "No! Wait! Can't we just talk about it!"

Spyro, Sparx, Hunter, Elora, Bianca, Sheila, Sgt. James Byrd, Bentley and Agent 9: "NO!"

When Spyro and his friends corner Ripto, the scene switches to Spyro, Sparx, Hunter, Elora, Bianca, Sheila, Sgt. James Byrd, Bentley and Agent 9 leaving the cemetery.

Hunter: "Hey, Spyro, how did you know it was Ripto."

Spyro: "When Sparx, Elora and I saw Ripto dressed in a ghost costume, I saw him use his magic to turn take the form of the Phantom Slasher. I figure it was just the kind of trick Ripto would pulled."

Sparx: "By the way, if it was him with the lights and him with the fog, then who was ringing the bell.

The bell tows again and someone screams. Spyro, Sparx, Hunter, Elora, Bianca, Sheila, Sgt. James Byrd, Bentley and Agent 9 turns to see someone falling out of the bell tower. And that someone happens to be Crash Bandicoot.

Spyro, Sparx, Hunter, Elora, Bianca, Sheila, Sgt. James Byrd, Bentley and Agent 9: "Crash Bandicoot?"

Crash Bandicoot: "What? I'm bored."

Back at the crypt, Ripto is tied up.

Ripto: (growls) "I hate dragons! I hate, hate, HATE DRAGONS! If there's anything I hate more than a dragon—it's a purple dragon! Curse you, Spyro! Crush! Gulp! You idiots, get me out of here RIGHT NOW!"

He sees light coming from behind the door.

Ripto: "Well, it's about time you finally came to me."

A ghostly figure in white with hooks for hands, an axe in one hand, a book in the other and blood red eyes phases through the door, approaching Ripto.

Ripto: "Huh? You're not Crush and Gulp! Hey! Stay back! I'm warning you! Crush! Gulp! Help!"

The scene switches to the exterior of the tomb in the cemetery as Ripto was heard, screaming in horror.