Young DJ Walters has been monitoring the mysterious goings-on at the house across the street for many years. Something is not quite right with the house owned by the reclusive Mr Nebbercracker - the house has a habit of making things disappear! It seems that anything that lands on the old man's lawn is as good as gone.
Determined to find the secret to this ravenous piece of real estate, DJ and his friends Chowder and Jenny hatch a plan to battle what is now deemed the Monster House, only to discover that it's not just things that are starting to vanish, but people are disappearing too. With Halloween approaching, and its attendant hordes of 'trick-or-treaters', the brave threesome decide it's time to go into the house and destroy it once and for all.
As soon as the characters enter the house, it springs malevolently to life: the carpet in the entrance turns into a giant tongue, its floorboards into an open mouth which swallows them whole. Armed with just water guns for protection, DJ, Chowder and Jenny have to confront their fears and beat the house.