The gang go to Decade Records recording studio to watch a live recording of their friend, Jimmy Lewis. But the building is haunted by the Phantom, who is trying to find a song by a missing writer, and will stop at nothing until he gets it.

The gang travel to China making their way to the city of Rampoo. While there, the gang run into the Moon Monster, whose shadow, legend says, turns people into stone.

The gang visit their friend, Antonio, in Venice, Italy, and find that he's haunted by the spirit of an ancestor, the Ghostly Gondolier, who seeks to steal the ancient necklace Antonio wears.