The story starts with Zach moving from New York to Madison together with his mother. Upon his arrival, he meets a beautiful girl by the name Hannah. While seated in his room, Zach watches the video of the New York mayor who was paying attribute to his father who had just been killed. The same night, Hannah comes in and asks Zach to take a walk with her to the forest. In the deep thick forest, they meet an abandoned them park where they climb on top. While they make stories, Hannah tells Zach that she never knew her mother and that her father continually moves with her from one town to another. The following night, Zach hears a scream from Hannah’s house, and he runs in, he meets Mr. Stine who tells him to go home.
That night, Zach meets with Champ in the driveway and they move home together. As they walk into the house, they find the floor covered with bear traps. As Zach puts on the light, he sees Hannah standing and upon asking what he was doing there, he sees an unlocked book. As takes the book, it opens up, and a 15feet snowman appears out of it. As the monster bounds through the wall and towards the forest, Hannah runs towards it with the book as Champ and Zach follow. As they get into the ice rink, Hannah climbs through and into the middle of the ice as she still holds the book. A vending machine is seen coming at high speed towards them forcing them to scatter. Hannah tries to suck back the monster into the book. As the monster runs closer to her, she opens the book and sees the monster get stuck. Unluckily for her, the book falls out of her hands, and as he runs towards it, the monster slams his fit making Hannah lose her balance and fall. A much scary part is seen when the monster destroys the Zamboni with one blow forcing Champ to jump and fall. The monster then starts to chase after Zach and Hannah, but they manage to get inside the box and close the door. The monster begins to crack the door to get inside.
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Mr. Stine later shows up and opens the book where the monster gets stuck. As they move back home, Zach demands to know the true identity of Mr. Stine as the author of the Goosebumps series. But Mr. Stine says that as he was a child, he developed severe allergies that forced him to stay indoors. He made monsters that he used to terrorize other kids who were coming to peep at his window, but one day, the monsters became real. He tells them that as long as the book was closed, they were safe as the monster would not get out. As they hear laughter from the room, they see Slappy who is then approached with the book by Mr. Stine. As they get to the kitchen, they see lawn gnomes that are popping out of every place. One gnome tries to stab Zach in the head but misses narrowly. The other gnomes are seen tying Mr. Stine and take him towards an oven that has just been turned on. Dramatically, the kids come in and smash all the gnomes, but the pieces fly back together.
The kids then run through as they are followed by the gnomes. However, they fall into the traps where they get shattered. As Zach, Mr. Tine and Champ runs out of the house; they only see destruction everywhere with piles of burned books. An invisible boy climbs into the roof of the car as they drive around town, grabbing Champ. The invisible boy lifts Champ and starts to slap him everywhere. As Mr. Stine hits the breaks, the invisible boy disappears into the air. While inside the car, Zach tries to communicate with Hannah but Mr. Stine tries to block by putting his hands in between. This causes a distraction, and he fails to see the people ahead in the road thus running into them. They were ghosts which leads him to drive into the giant praying mantis. Mr. Stine speeds off with the mantis and crashes the car into the parking lot of the supermarket. They run out of as the mantis continues to destroy the car. In the store, they see a wolf which starts to run after them as they close the door, the wolf breaks it, and they find themselves locked in the back parking lot with the wolf still moving towards them.
As the group walks along the cemetery, Hannah’s jacket gets tangled in the statue. As Zach tries to help her, she fades away, and Zach realizes that she is also not a real human being but just a character created by Mr. Stine. More pop out is seen at the graveyard forcing the group to run away back to the gate. Mr. Stine is grabbed by the ghouls as the kids grab his arms creating a tug of war between them which forces Mr. Stine to kick the ghouls on the face and push his way out.
