In this game Casper has been sent to Scare School by his three uncles, to learn to be a more scary and less friendly ghost. The game is set entirely in the classrooms of Kaibosh's Scare School itself where Casper, Ra, Manda and 12 of the other students featured in the film have been enrolled to learn the art of fear through Chemistry, History and Gym lessons.

Throughout the game the player plays the role of Casper, who, in order to succeed in his lessons must help his fellow students pass objects around behind the back of his teachers, whilst at the same time completing his school work. He gets even higher grades for scaring the school bully Thatch, but he must avoid the teacher's gaze at all times, or he will be punished.

At the end of each lesson Casper is given a grade from E to A++, his ultimate aim being to graduate from Scare School at the end of term and return to his uncles a scarier, but still friendly, ghost.