Tamara has left Rentaghost to go to Holland, and sends her cousin, Nadia Popov, to take her place. Together the ghosts help the Meakers move house to their new home - which just happens to be right next door to the Perkins again.
Mr. Claypole casts a spell to make Harold a champion ice skater, but after he and McWitch catch a psychic illness, there's no way to remove the spell. Meanwhile, the Perkins hire a psychiatrist to analyse the Meakers' eccentric behaviour.
The Meakers try to improve relations with the Perkins by getting the ghosts to perform a series of good deeds. But when Mr. Claypole creates a magic talisman that will grant any wish the Perkins desire, things get even worse.
The Meakers and Adam Painting find out what it's like to be toys in a doll's house. Meanwhile, the psychiatrist report that the Perkins have been waiting for isn't all they'd hoped.
Mr. Claypole discusses his past, serving as a jester to "arrogant" Queen Matilda. Unfortunately for Claypole, his discussion sends psychic vibrations Heavenward, that cause Queen Matilda to come down to Earth and hold court at Rentaghost.
Harold wants to celebrate his wedding anniversary and open his new gardening store, but a thief and the Perkins' magic talisman cause a series of problems.