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One summer, while exploring the town during their annual stay at Grandma's house, two siblings and their cousin come across a creepy old house. The kids poke around, one of them causing mischief and tossing rocks at the window, until they glimpse a ghost through the glass! Later, Grandma reveals the house doesn't belong to a ghost -- just old Mr. Peterson. After visiting again with better intentions, the kids discover Mr. Peterson's great sense of humor and that his house is full of fascinating things: old toys, photographs, even a film projector. They become regular visitors, until one day, Mr. Peterson is gone: he has left for a retirement home, and his house sits empty. Using odds, ends, and gifts he gave them, the kids create mementos of Mr. Peterson's home to give back to him.