Panty & Stocking infiltrate a school to discover the secret of the disappearing students.

Panty & Stocking are invited by a movie director to star in a movie about their Ghost-killing adventures.

When Stocking gets slightly overweight, she goes on an obsessive diet with no such luck. However, she ends up getting fatter, eventually turning into a giant the next day, revealed to be the work of a Ghost.

The school is taken over by the demon sisters, Scanty and Kneesocks (the daughters of the mayor), and Panty and Stocking aren't pleased with the new changes they have made. In order to get their revenge, they team up with a Loser Ghost, who leads them to an underground factory where the demon sisters are producing Fake Ghosts. Whilst Brief escapes with the Ghoststone powering the factory, Panty and Stocking fight against the demons sisters.

Panty and Stocking find themselves against a horde of zombies who are immune to their angelic weapons.

Stocking finds herself falling in love with a rude and flatulent Ghost, much to Panty's surprise.

Panty is kicked out by Garterbelt for the loss of her powers, but he secretly helps persuade her, with assistance from her grandmother, to stop Corset from using Brief to unlock Hell's Gate using Hell's Monkey. Panty has sex with Brief, breaking her hymen and restoring her powers. Stocking returns from Heaven and helps Panty take on Corset and the demon sisters.