Panty & Stocking have to go into the nasty Daten City sewers to find a Ghost that is eating people in the bathroom.

Daten High holds a lingerie run, in which students race in their underwear. The run is soon interrupted by a Ghost that eats everyone's underwear, including Panty and Stocking's weapons.

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

Panty and Stocking find Garterbelt's diary and learn of his past life as a crime lord before going through several trials set by God.

Brief falls onto Hell's Gate and accidentally unlocks it with Hell's Monkey, unleashing a massive Ghost that begins destroying Daten City. Corset fights and kills Garterbelt and proceeds to merge with the Ghost and try to invade Heaven. Panty and Stocking find a credit card hidden in Garterbelt's afro and use it to buy a device that summons their mother, who seemingly destroys Corset and forces the Ghost back into Hell's Gate, which is sealed by Chuck. Garterbelt returns to life in order to continue watching over Panty and Stocking, who are forced to remain on the surface again due to maxing out his credit card. As soon as they return home, Stocking promptly slices Panty to pieces, revealing herself to be a demon working with Corset, who respawns from Brief's penis.