A darkly beautiful and mysterious woman comes in to town and inhabits the local haunted mansion, making everyone wonder if she's a witch or "The Grey Lady".

Jake Russell, the friendly police chief in town so small initially worries about mysterious outsider heiress Cassandra 'Cassie' Nightingale, who moved into the house held to be haunted by the 'grey lady', and opens a strange gift shop full with attributes of occultism, soon causing the rumor she's a wicked witch. After Cassie kindly helps his brave son Brandon (and his sissy sister Lori) with a dog, bully Kyle -abused by his own poor dad- and their own fears, Jake soon makes friends with her, even romantically interested. Yet the 'chief' is professionally obliged to handle a flood of complaints and harassment started by the mayor's haughty wife, her busy bodies-bunch, and teenage brats. Finally Derek Sanders, Jakes's only deputy, hits on Cassie's hidden background.—KGF Vissers