For the fifth installment in the Air Buddies series, the plot follows the team as they have a Halloween adventure in Fernfield to stop the evil Warwick the Warlock and save the town.
75 years later, the Buddies are on a school trip to Warwick's manor with their owners, Alice, Billy, Pete, Sam and Bartleby.
When the class go to the graveyard to see Deputy Tracker's memorial stone, Billy finds himself scared of the gravedigger Mr. Johnson.
B-Dawg, who is a "scaredy cat", tries to prove he's not scared by entering the condemned manor and saying "Halloween Hound" three times in front of the mirror.
B-Dawg's owner, Billy, hasn't come up with his history project and decides to do it on the Halloween Hound.
He sends the Halloween Hound to find the Buddies, who ask for help from a sorceress dog named Zelda.
Warwick takes the pups hostage in his manor and tells their owners that if the book isn't returned, he will kill them.
After escaping, they run from the Hound, who has turned Pip back to stone and opened the portal, releasing the evil spirits from the mirror.
He reads the spell that returns Warwick and the evil spirits to the mirror while changing the petrified and brainwashed victims back to normal.
The kids bid goodbye to Mr. Johnson, who has located the owners of Pip's brothers and sisters and travels around America to return them.