In 1980, a crack team of Taoists (garbed like ninjas!) successfully vanquish a mob of ghosts -- except for female demon Pinkish Red, who manages to escape. Six years later, Cici Shin (Charine Chan Kar-ling) and her cousin, Lily Li (Ann Bridgewater), open a boutique and need a mirror for their fitting room. The mall security guard finds one for them in the basement but, naturally, Pinkish Red resides inside it and, when Cici cleans the mirror’s surface, the ghost is able to enter back into the real world. In between flirting with hair stylist Sheng (Mark Cheng Ho-nam) and his goofy sidekick, Rambo (Rambo Tung Wai-kwong), the girls experience a variety of weird occurences, until the ghost snatches Cici and takes her down to Hell. A former classmate of Lily, "paranormal teacher" Kang Yo-wei (played by the film's director, Peter Mak Tai-kit) has invented a machine designed to tap into the brainwaves of the dead. Unfortunately, it also has the unexpected side effect of reviving an entire cemetery full of corpses. Yo-wei's uncle (a cameo by producer Raymond Wong Pak-ming) reveals the reasons behind Pinkish Red's tragic history and the reasons for her current actions but it is up to Lily and company to enter the netherworld and rescue their friend.