The gang are told what to do and try to catch another ghost at City Hall.
The Master Hippie and Googie go with the gang to the mansion. They are going to explain what the gang havev to do to be in Hippieville-although the Master Hippie does almost all of the explaining is done by the Master Hippie. Once there, Googie pours some tea and serves some cookies for everyone, and of course Scooby and Shaggy eat all of them. The Master Hippie explains that each new person in Hippieville must complete a test before they can live there. The test must be something that applies to the person's job or personality.
For a blacksmith, for example, he had to create five incredibly hardly shaped statues made of metal. For the gang, they must complete ten mysteries. One of them they have already solved-the Flowery Phantom (The Many Haunts Of Hippieville). Googie gives the gang-actually Velma-a list of monsters, and Velma crosses off the Flowery Phantom. The Master Hippie says they can solve them in any order. So the gang crowds around to see what the next one will be, and they decide on the ghost of the original Master Hippie, and head to City Hall (along with the Master Hippie and Googie).
The gang get to city hall and find a woman protesting. She wants the Master Hippie out of town and a new person in. She is called Ferna Gamilts, and wears a monogrammed tie, which she says she has thousands of. The gang go inside and split up. Shaggy and Scooby go to the secretary's office and the rest of the gang go to the printing room, as that is where the ghost has been sighted. Googie and the Master Hippie go to his office.
In the secretary's office, Shaggy and Scooby meet the secretary, Mr. Justus. He is a nice man but he says he has too many telephone calls all day. He wants the Master Hippie to do something about it. Although this is a seriously bad reason/motive for dressing up as a ghost, Shaggy and Scooby still count him as a suspect, since he has suspicious white stuff-color of ghosts-on his desk. Doesn't matter anyway what color because when Scooby and Shaggy walk out of the office they meet the ghost, and he is not the color on the guy's desk. They are chased to the Master Hippie's office and look around some more at the bottom, where the break room is.
Meanwhile, the rest of the gang has looked around the printing room but no clues. Daphne finds a thing that says "monograms by the thousands" and Velma immediately realizes what it is and the gang find Shaggy and Scooby. Fred decides to set a trap.
The trap consists of Shaggy and Scooby dressing as the Master Hippie and his assistant in his office. When the ghost comes they will both jump out of the office, which is actually fake, and the door will lock. The trap works with Shaggy and Scooby caught inside before they crash through the office and ghost is caught.
The ghost turns out to be Ferna. She wanted to drive the Master Hippie out, which unfortunately for her failed. The episode ends with Shaggy seeing someone he thought he would never see again.