A volcano on Hawaii is erupting while Scooby and Shaggy are eating at a luall. Scooby brings up an ancient villiage, but their tour guide mentions that it is haunted. Drums starting pounding on their own and the sky turns black right as a ghostly tiki god appears and warns everyone to leave. Shaggy trips and when he looks up, everyone including Scooby is gone. He runs to tell the gang, and they all go to investigate. They all see a floating ghost drum and they run and hide, but it follows them. It flips itself over and reveals Scooby. They go to investigate their tour guide, Simms, disappearance and find tracks leading away from the area. The gang manages to get themselves lost and stumble upon the haunted villiage that Simms had written about in a newspaper the gang had found. Fred, Daphne and Velma get trapped inside a hut after the Tiki ghost scares them and Velma disappears through a trap door that Fred accidently pulls when he picks up a torch. She falls into a holding cell and hides in a bale of hay when the Tiki ghost comes in. She manages to escape and meets up with Scooby and Shaggy and run as the Tiki ghost finds them again. They run into a hut and hide, but the ghost manages to find them again and the chase ensues. Daphne and Fred continue to look for their friends, but instead they find a bunch of oyster shells and pearls. Meanwhile, Velma, Shaggy and Scooby find an airplane disguised as old and abandoned. A dummy skeleton scares them and they run- straight into Fred and Daphne. The gang find footprints and they lead to a lagoon and find an old man. They chase him into an underwater cave and find second way to the haunted villiage. They see the Tiki ghost again and a huge statue begins to follow them. Scooby and Shaggy are able to trick the Tiki ghost for awhile, but it doesn't work for long. The gang once again confers and Fred shows the gang his plan to capture the Tiki ghost. Shaggy and Scooby begin to play drums and that lures the Tiki ghost there and a chase scene ensues. They finally catch him, when the large statue catches him on accident. Simms plan was to poach pearls from the locals and take the other underwater route to smuggle them out. The old man that the kids had been chasing was Lt. Tumuro who had been investigating the pearl poachers already.