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 others are drawn to the Hex Girls, an all-female gothic rock band led by Sally "Thorn" McKnight, during one of their rehearsals.

Fred Jones and Daphne Blake follow Thorn and, upon discovering her seemingly performing a ritual, believe the Hex Girls are witches.

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

"[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.