Popeye suddenly spies an old sailing ship on the horizon, which also thrills Olive who cannot wait to go home and watch television again.
The captain of the ghost crew agrees that they must get rid of the boarders in order to keep their peaceful life at sea intact.
Soon afterwards, as Popeye starts to sail the ship in the direction towards land, two ghosts appear behind Olive (resting in the anchor rope) and toss the anchor overboard (to stop the ship in place), which unravels the rope and sends Olive flying and spinning.
Olive then flies towards Popeye and, with her spinning legs, knocks him through the ship's wheel, much to the amusement of the ghosts.
While Popeye struggles underwater trying to free himself from the rope, Olive tries to pull the anchor back up, but isn't strong enough.
The moment Olive begins to state her suspicions about the ship, two ghosts (carrying her) appear, holding her by her arms.
Seeing that all their haunting isn't working, the ghosts run towards Popeye and Olive while wielding swords and shouting out what they intend to do with them.
While inside, he sees a jar of "ye king's spinach" and runs back out to face the attacking ghosts.