Sonic the Hedgehog has always wanted to spend Hallowe'en at the Haunted Zone, so he's finally got round to it. Tails has joined him, but he doesn't think it's a particularly good idea. In fact, he thinks it's a complete waste of time. People say that once a year, on Hallowe'en, "ghosties and goblins" come out to play. Tails recounts the tale of two ghost hunters who came to the Zone one year. They were searching a mine shaft, since the Zone used to have a huge reserve of gold. One of the explorers turned round to ask for a torch and his friend was gone! Tails obviously thought his story would have more of an effect, so the fox turns to Sonic to find he's vanished! Tails panics until Sonic appears behind him, playing a practical joke.
Tails continues to reveal the Zone's history. The area used to be the wealthiest Zone on Mobius, until gold miners dug into an ancient burial ground. Ever since, the whole Zone has been cursed. Sonic doesn't really buy it and urges Tails to trust him. Quite aggressively, Sonic challenges Tails, asking him if he really does trust him. To prove it, Sonic wants to swipe at Tails with a stick, but plans to miss. If Tails trusts Sonic, he won't evade the attack. Tails worries about his friend and flies out of the way just as Sonic swings the stick at Sonic speed, aiming to hit him. Believing Tails doesn't really trust him, Sonic reveals that he has new "friends", ghouls from under the ground. One of them tries to present Sonic with a Charm of Despair, but Tails intervenes. Sonic punches his old friend and accepts the gift. Wanting to "take care" of Tails, Sonic advances with his new army, but Tails flies to safety to think.
Hours later, Tails still doesn't have a plan and it must nearly be midnight. Suddenly realising what he just said, Tails remembers that Hallowe'en ends at midnight and rushes to Sonic's aid, hoping to not be too late. On the ground, a ghoul asks Sonic if he's ready to head to the Underworld, to which Sonic agrees. Tails spots the amulet and pulls it off Sonic's chest. The monsters sink back into the ground, Sonic unable to follow without the Charm of Despair. The hedgehog comes to his senses but thinks he's fallen asleep, blaming Tails for letting him! Looking at the charm, Tails quietly refuses to tell Sonic what just happened.
- When wearing the Charm of Despair, Sonic has green eyes. This effect would return permanently in The Coming of Chaos!.
- This story sees the only appearance of the Haunted Zone and its creepy inhabitants. The Charm of Despair also disappears, suggesting Tails got rid of it.
- A butchery exists that shows the stick Sonic wields to be sentient, expressing deep displeasure when Sonic snaps it in half.