The Chimpanzee beneficiaries of Sandy's undersea treedome are paying a visit to see what progress she has made with her inventions. But Sandy doesn't think any of her work will satisfy the chimps, and if they don't like what she's invented Sandy could lose her funding forcing her to leave Bikini Bottom. SpongeBob and Patrick decide to help their distraught friend by taking over her work and finishing her inventions.

The Flying Dutchman takes up residence at SpongeBob's house where he proceeds to scare, startle and surprise SpongeBob around the clock. Eventually all the spooky shenanigans grow old, and SpongeBob is no longer afraid of the Dutchman. This creates a panic for the old ghost who now fears that he has lost his scary touch. So SpongeBob decides to lend a hand and help the Flying Dutchman learn to scare people again.