On the outskirts of a small town there is a rock formation called Witch Mountain rumored to possess mysterious powers.

A young waitress, Zoe Moon, witnesses infant twin children Anna and Danny appear behind the diner in a pillar of purple light, causing her to faint from shock.

After his latest attempt is thwarted, his frustrated social worker decides to leave him at an orphanage run by Lindsay Brown.

When Edward Bolt, a local magnate seeking to develop the nearby Witch Mountain, notices their powers, he decides to care for both of them as their foster father.

Meanwhile, Zoe sees the purple light from the front of the shop and recognizes it and confronts Waldo to discover the fate of the twins she saw years earlier.

Waldo casually comments that he will be waiting for the next group of tourists, while Anna and Danny float up into the purple smoke to Witch Mountain.