Dr. Richard Mortimer recounts to Sherlock Holmes and Doctor Watson in Baker Street the legend of the Hell hound that killed the devilish Sir Hugo Baskerville for his murder of the daughter of a servant.

They briefly encounter a strange man who flees in the shadows, and a distant hound howls, provoking in Sir Henry a mild heart attack.

Holmes explains about questioning Barrymore about the missing portrait; it was stolen because it revealed the fingers on Sir Hugo's right hand were webbed just like Stapleton's.

Sir Henry is unscathed from the mauling as Holmes reveals the hound to be an ordinary dog wearing a mask to make it look more terrifying.

Cecile tries to flee across the moor, only to fall into the Grimpen Mire and sink to her death as Holmes and Watson take a shocked Sir Henry back to Baskerville Hall.

[5] He re-read the stories, made detailed notes in his script and sought to portray Holmes closer to his literary counterpart.

[5] However, when producer Anthony Hinds suggested excluding the famous deerstalker Cushing objected, saying Holmes' headgear and pipes would be expected by the audience.

[7] Lee later said he was awestruck by Cushing's ability to incorporate many different props and actions into his performance simultaneously, whether reading, smoking a pipe, drinking whiskey, filing through papers or other things while portraying Holmes.

[8] Morell was particularly keen that his portrayal of Watson should be closer to that originally depicted in Conan Doyle's stories, and away from the bumbling stereotype established by Nigel Bruce's interpretation of the role.

[12] André Morell's Watson has been praised for his far more accurate rendition of the character as envisioned by Arthur Conan Doyle, as opposed to the comical buffoon created by Nigel Bruce.

[5][12] A negative review in the Monthly Film Bulletin stated that "any freshly entertaining possibilities in this much-filmed story have here been lost in a welter of blood, love interest and mood music".