The film follows the title character who peacefully haunts a mansion called Whipstaff Manor in Friendship, Maine, meets and befriends a teenage girl named Kat Harvey (Ricci), the daughter of Dr. James Harvey (Pullman), a paranormal therapist who is hired to move into Whipstaff in order to rid the mansion of its spectral inhabitants.

It goes for a darker interpretation of Casper in comparison to the previous comics, cartoons and theatrical shorts, notably providing the character a tragic backstory that addresses his death.

Following the death of her father, neurotic and spoiled heiress Carrigan Crittenden discovers she has only been left Whipstaff Manor, located in Friendship, Maine, in the will while his vast wealth has gone to several charities.

Casper gains the Harveys' trust when he serves them breakfast, and follows Kat to school, where she becomes popular when her class learns she is living in Whipstaff, and agrees to host their Halloween party there.

A newspaper article reveals that Casper's father was declared legally insane after he built a machine, the Lazarus, which he claimed could bring the dead back to life.

They plan on killing him to make themselves a quartet, but have a change of heart after the drunken therapist declares he will tell Carrigan off so they can stay in their home.

In the laboratory, the ghostly Carrigan confronts Casper and Kat, stealing what she believes to be the treasure from the vault and launching Dibs out a window when he tries to double-cross her.

As Carrigan demands to be brought back to life, Casper and Kat trick her into saying that she has no unfinished business on Earth, causing herself to be ejected into the afterlife.

A boy dances with Kat, and is revealed to be Casper, temporarily granted physical form by Amelia, who had become an angel after her death.

[5] In an interview with Comic Book Resources, he claimed that he was intrigued with doing a children's fantasy, and wanted to do a more dark film, akin to The Wizard of Oz.

[9] Extensive use of computer-generated imagery was used to create the ghosts, and it was the first feature film to have a fully CGI character in a leading role.

[13] The track "Descent into Lazarus" was used in a trailer for How the Grinch Stole Christmas, another film by Universal Pictures and has music by James Horner.

Its critical consensus reads: "A meandering, mindless family movie that frequently resorts to special effects and transparent sappiness".

In his 2015 Movie Guide, Leonard Maltin gave the film a "BOMB" rating, objecting to the portrayal of Casper as a deceased child rather than a ghost.

[30] The success of Casper secured Silberling the job of directing the 1998 film City of Angels, a remake of Wings of Desire starring Nicolas Cage and Meg Ryan.

However, in July 2000, Universal Pictures cancelled the sequel due to the disappointing sales from the direct-to-video Casper films and the hesitation of Christina Ricci.