While vacationing at a friend's country home, the four Alden siblings try to find a long-missing, priceless brooch, while also investigating the existence of a ghostly stream.
Henry, Jessie, Benny, and Violet Alden meet Mike Wood and a strange chain of events begins. Mike's house is mysteriously burned down, a man in a blue hat appears, and the Aldens' uranium mine is in danger of being sabotaged.
While helping fix up the old house their cousins have bought, the Aldens hear stories about its being haunted and find evidence suggesting that there may be a ghost there.
While exploring the caves around Dragon's Mouth Cavern, a series of unusual and somewhat frightening events convinces the Alden children that someone does not want them around.