Carolyn Muir, a young widow from Philadelphia, moves into Gull Cottage on the coast of Maine with her two young children, family dog, and housekeeper. Unknown to her Gull Cottage is already inhabited by the ghost of the former owner Captain Daniel Gregg, a charming but somewhat aggravating ghost who is not sure if he wants this family in his home.

A young couple on the way to their wedding get stranded at Gull Cottage for the night and Captain Gregg is beside himself at what to do with them. So he decides they must get married that night.

When antique hounds visit the cottage, Claymore tries to sell them the Captain's barometer by switching it for a replica he had made, but the Captain switches them back and Claymore is arrested for selling the fake.

A former beau literally sails back into Carolyn Muir's life on his yacht and asks her to marry him much to the jealously of the Captain.