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The story starts off with Baloo and Kit Cloudkicker playing a pinball game at Louie's when a stranger comes in and says to Baloo that a ship came in from some fog, gave the stranger a coin, and sail away. Louie came over and said that the coin was a golden ragoon and the stranger was astounded. He said that he was going for more, and during that conversation, one of Don Karage's minions overheard the conversation and thought it would be good for Karnage to seize the oppertunity.
While looking at where Louie was doing his tours of the ghost ship, Baloo and Kit thought something weird was going on. During that time, the ghost of the ghost ship, named Festus LeForge gave a gold ragoon as a few tourists went into the water to retrieve it. Baloo and Kit then noticed the Iron Vulture land on the deck of the ghost ship, meaning to them that Don Karnage will be landing on the ghost ship. Don Karnage then announced that he was going to invade the ghost ship while Kit and Baloo went to go after Don Karnage using the Sea Duck.
Don Karnage went down to meet LeForge himself and Karnage wanted the golden ragoons. However LeForge revealed to Karnage that he was an actor. Karnage then ran after the actor and accientally hit the fog machine with his sword, causing extra fog to appear. Baloo and Kit went to rescue before the ghost ship can crash into the nearby mountains. Kit gave a warning to the crew so they can get off the ship safely while Don Karnage told his men to pull him up. Kit noticed that the ghost ship crashed but knowing that everyone was safe. Don Karnage meanwhile complained about how he was tricked and was going to make everyone walk the plank.
Louie then confessed that the ghost ship was an attraction for getting customers but didn't work too well and that the golden ragoons were wooden nickels painted gold. Baloo then pointed out to Louie that the tourist would like their money back.