After Ben Ravencroft, a famous horror writer of whom Velma Dinkley is a fan, assists her and Mystery Inc. in solving a case at a museum in San Francisco, he invites them to his hometown of Oakhaven, Massachusetts.

When they arrive, they find the town's Mayor Corey has converted it into a tourist attraction based on the ghost of Sarah Ravencroft, Ben's ancestor who was persecuted as a witch and executed by the Puritan townspeople in 1657.

Ben disputes this, claiming that Sarah was a Wiccan who used herbal remedies to heal the less fortunate and that he has spent years searching for her medical journal to prove her innocence.

While Scooby-Doo and Shaggy Rogers are chased by Sarah's ghost, the gang is drawn to the Hex Girls, an all-female gothic rock band led by Sally "Thorn" McKnight, during one of their rehearsals.

Warner Bros. suggested screenwriters Rick Copp and David A. Goodman, which insulted the team that had produced the first film in total autonomy.

In addition, the studio requested the filmmakers "tone down" their content, as they feared Zombie Island had proved too scary for its intended audience.

"[7] On September 14, 1999, the soundtrack was released on CD and Audio Cassette, featuring songs by The Hex Girls, and Billy Ray Cyrus performing "Scooby-Doo, Where Are You?".

The VHS included the pilot episode for Courage the Cowardly Dog entitled The Chicken From Outer Space shown at the end.

[10] David Parkinson of Radio Times, gave the film two out of five stars, saying, "This full-length cartoon featuring the ghost-hunting teenage detectives is something of a mixed bag.

"[11] Joe Neumaier from Entertainment Weekly said, "Though slyly written, it doesn't have the punch of last year's Scooby-Doo on Zombie Island – but it's still scarier than The Blair Witch Project.