Lydia's favourite tree, Spooky, is slated to be cut down so the road can be widened. Beetlejuice, in a fit of generosity, grants Spooky with the gift of locomotion, allowing the tree to run rampant through the town. Finally, kind-hearted Spooky is replanted somewhere he can be really happy.

A video game called Scourge sucks Lydia and Beetlejuice into cyberspace, and they must outsmart the computer if they ever hope to escape.