Óskar's wife Lára (Ólafía Hrönn Jónsdóttir) is a professional medium and, in the film's account, is aware of her past lives, able to see and talk to ghosts and to at least perceive the reality of elves.

He is unable to admit the family's impending bankruptcy to Lára, who finds out about it from the spirit of a dead person; ‘við hefðum aldrei átt að fara út í þennan túristabissness’ (‘we should never have gone into this tourist business’), she comments.

Lára and Óskar have two children: the teenager Ásdís (Hallfríður Tryggvadóttir), who tends to share her father's pragmatism and scepticism and later proves oblivious to the presence of ghosts, and the young boy Flóki (Nökkvi Helgason), who becomes best friends with a boy called Þrándur (Alexander Valur Wiium Brynjólfsson) who turns out to live in the elf-stone in the family's garden; Flóki later also proves able to see and talk to ghosts.

Meanwhile, the municipal authorities of Kópavogur are planning to sell Grásteinn in order to facilitate a road-widening project, despite mysterious technical problems and Lára's protestations.

A sub-plot in the film is Ásdís's relationship with Sverrir Þorsteinsson (Snorri Engilbertsson), chairman of the atheist organisation Andtrú (Disbelief), whose views are portrayed as extremist.