The film is about a spirit of the late female singer Tsui Pan Han (Maggie Cheung) waits in the afterlife for a chance to be reincarnated.

Her opportunity to be born into the new family is ruined when Sam Kwai (Raymond Wong) takes the pregnant wife to the wrong hospital.

Pan Han is given one month to find a new body to assume her reincarnation in, and decides in the meantime to harass Sam Kwai.

[5] To found the film easy to approach as he did not have to write the script and was told he was not allowed to change it by Cinema City's rules.

[7] Happy Ghost III was a hit for Cinema City and grossed a total of HK$15,339,277 and was the 11th-highest-grossing film of the year in Hong Kong.