Flash-forward to the present day, an American family of three, which includes writer Ted Fletcher, his wife Laura, and their 12-year-old daughter, Amy, moves into this since-abandoned house and starts to experience incidents of haunting and possession.

The three dead people still haunt the house and subject each of the Fletcher family to various harassment and mischief which gets more frequent and serious with each passing day.

At the same time, Laura slowly becomes consumed by the evil presence of the three ghosts and begins an affair with Alex Curtis, a diplomat friend of Ted's who introduced them to the house.

They possess all three of them and finally re-enact the gory confrontation from the opening scene, leading to the deaths of Alex, Laura, and Ted.

Vincent Canby of The New York Times wrote, "The House Where Evil Dwells... should satisfy all but the most insatiable appetites for haunted-house movies..."[1] TV Guide said, "The film has more nudity than chills, but it does have some quirky humor, especially in the exorcism scene.