A man sailing aboard a ship glances across the ocean using his binoculars. When he comes across a strange ship, we can see that he is visibly shaken as he has just seen the boat belonging to the GHOST OF RED BEARD!
Meanwhile, in the Malt Shop, Fred reads out loud an article concerning a recent trend of freighter ships being raided. C.L. Magnus, the freighter ship company owner, claims that it is the ghost of Red Beard who is stealing his ship. Feeling sorry for Mr. Magnus, Freddy and the gang decide to solve this mystery, so they head over to Mr. Magnus’ penthouse at 11:00 p.m.
Knocking on his door, they meet Mr. Magnus’ butler, who refuses to let them in and explains that Mr. Magnus is not to be disturbed. Knowing if Mr. Magnus would let them in if he knew that they were there to help, the gang uses the old room service gag to enter the room.
Shortly after entering, C.L. Magnus tells the gang his dilemma. It seems that 300 years ago Red Beard was the terror of the seven seas. Magnus’s relatives, however, brought him to justice but Red Beard vowed revenge. His revenge, it appears, is stealing Mr. Magnus’ ships.
Eager to help Magnus and debunk the Pirate Ghost, the gang get a small boat and check out one of Magnus’ boats on the ocean. On the sea, they spot a fog bank and go into it, hoping to find Red Beard’s ship. There they spot the ship and implement Operation Decoy – a tape-recorded message of a boat’s fog horn – in order to bring the ship closer to them.
The ghost ship falls for their plan, however, it also ends up cutting the gang’s boat in half, splitting up Scooby and Shaggy from Daphne, Fred and Velma. While Daphne is upset that her hairdo just got wet as their boat starts sinking, Scooby and Shaggy board the ghost ship, or as Shaggy says, “This Creaking Creepy Craft”.
Red Beard’s Pirate Ghost Ship
Scooby and Shaggy enter Red Beards Cabin, where they run into Red Beard, and then Red Beards floating ghost sword. The sword chases the two until it makes them run right into Red Beard and his two ghost pirates.
After Shaggy and Scooby are caught, Fred, Daphne and Velma spot Red Beard and follow him into a room where he disappears. In this room spot CLUE #1, two tubs of dry ice. As they spot this clue, Red Beard locks them in the room, and they are unable to get out.
Threatening to kill Shaggy and Scoob, Red Beard plans to let them live if they cook him up a good meal. Shaggy decides to make Ghost Pirate Stew, which consists of boiling sea water, chains, stove ashes, cobwebs and soap. Red Beard makes them eat it first, which causes Shaggy and Scooby to burp up bubbles. Blowing massive amounts of bubbles out of their mouths, Shaggy and Scooby create a diversion and get away.
The two pirate cohorts chase after the two, but Shaggy puts together a paper pirate hat and imitates Red Beard, sending the two ghosts away. Then, while hiding under a tub, Shag and Scoob fall off the ship and end up in the water. Using the tub as a boat, the two follow the ship into a secret cove at Skull Island.
On the island, Red Beard plans on turning Fred, Daphne and Velma into ghosts, however when he walks away, Freddy uses some straw and chewing gum to escape from their cell and shackles. They run towards some tunnels and bump into Shag and Scoob where they come across CLUE #2 — Shaggy’s paper hat is the ship’s manifest, a document that tells how much cargo a ship is carrying and how much the cargo is worth. This manifest was for a ship that was to ship January 10th, which makes Velma suspicious as the date was January 9th.
In the tunnels, they spot CLUE #3, some Truck Tire Tracks, and the gang follows the tracks to a dead end, with only a treasure chest in sight.
The gang decide to open the pirate chest and a skull pops out asking them for the password. Fred says “16 men on a pirate chest,” and nothing happens. Velma then says “Yo Ho Ho, Blow the Man Down,” and again nothing happens. However, when Shaggy says “Yum, Yum, Yum and a Liverwurst a la mode,” a secret passage opens up.
When they enter the passageway, Red Beard Spots them, While Shag hide behind some crates, Fred, Daphne and Velma hide somewhere else. The Ghost Sword chases Scooby and Shag, where they hide in a crate full of boxes of Scooby Snacks. There they eat a box, and Shaggy has a Liverwurst duel with the sword. The Ghost Sword eventually gets stuck in a barrel full of oil and Shaggy and Scoob run away.
Using toilet plungers and a bow, Freddy, Daphne and Velma catch Red Beard’s two ghost pirates. Shaggy and Scooby use an eggbeater to tickle Red Beard. Planning to escape on an automatic Pogo Stick, Shaggy and Scoob realize too late that it is really a Jack Hammer. However the Jack Hammer ends up getting stuck in Red Beard’s pants sending him into a pile of tires where he is trapped.
As Red Beard is trapped, the gang call the proper authorities to unmask the Gooney Ghost. It turns out the ghost is C.L. Magnus, and the two ghost pirates are his real-life pirate henchmen. Mr. Magnus was about to lose his shipping business unless he came up with some money. So he hijacked his own ships so he could sell the cargo for cash. The ghost sword was merely operated by using some wires, and the thick fog the ship sailed in was created using dry ice mixed with water. To demonstrate the fog, Scooby uses some dry ice filling up the air with mist. He then cuts a hole in the fog making a dry ice donut, which he ends up eating.