Bheem and friends are in Pretpur listening to the story of Shaatir witch and Pishaach Raja from Chhan-Chhan when Bulbul mausi interrupts the story and insist they go to sleep after eating her homemade rasgullas that are famous in Pretpur, and not go out during the night. However, Chhan-Chhan is hypnotized by a ray of blue light emanating from the top of a lighthouse and carries a jar full of Rasgullas after everyone is asleep. Kalia, however, wakes up planning to eat more of the aromatic sweets but discovers the disappearance of Chhan-Chhan. The kids start searching for Chhan-Chhan and reach the light house trying to solve Betal’s riddle who was trying to inform them about Chhan-Chhan’s whereabout. However, they are stopped by an army of bats who then magically turn into a monster, but Bheem and team are able to defeat the monster and save Chhan-Chhan, but find out that the Rasgullas have been stolen by some unknown power. Dr. Daadi, the doctor of ghosts thinks it is a bad omen.

In the town of Pretpur, a mysterious affliction transformed ordinary people into eerie Pisaachs, instilling fear and suspicion. The Pisaach Raja is the prime suspect and Bheem and gang embark on a quest for the truth. Meanwhile, Kaalia does not join them cause he’s too drowsy; making him the butt of Raju and Jaggu’s taunts. Pisaach Raja, in turn, accuses them of stealing his Crown. The gang vehemently deny that humans stole the Crown. The Pisaach Raja, seething with anger, divulges that only when a human wears the Crown then half-pisaachs like those roaming Pretpur are created. If he, Pisaach Raja had done this then the people of Pretpur would become full-pisaachs. The gang try to explain but Pisaach Raja sends them flying into the Pisaach Jaal; a portal full of the most evil and vile pisaachs. Pisaach Raja thinks that the extraordinary pisaachs of Pisaach Jaal would get Bheem and gang to reveal who stole the Crown. Raja then reveals that he needs the Crown for the most important evil ritual ever: one that would free his vile Master.

Pisaach Raja gets other ghosts to retrieve the brooch for the ritual from Bulbul’s house as it’s protected by a strong spell that’ll turn him into ashes. Bhoot Chacha comes to Bulbul’s house - takes the kids for some help at his shop. Crimson Moon is in full power, Bhoot Chacha and all the other ghosts of Pretpur are under an evil spell of Pisaach Raja. He attacks Chutki for the brooch. Bheem takes them all out. Chutki faints, everyone gets to know from Dadi that she was cursed but saved by the brooch. Betal communicates through Dadi and asks them to hurry. Kids get to know about the backstory of Nani and Pretpur. Chutki solves the riddle but gets kidnapped by the vampires. The kids rush to the haunted house. Pisaach Raja forces Chutki but she refuses to give her brooch. Bheem takes them down but they get tricked. The witch comes into power. The kids distribute rasgullas and change the ghost back to normal. Bheem fights the witch, breaks the brooch - gets hurt in the process. The witch almost turns him into a ghost - Betal stops the witch - with Bheem’s help takes her down. Nani returns as a ghost.