Porker Lewis has been kidnapped by Rouge the Bat, and is being interrogated for the combination to the box containing the Chaos Emeralds, with help from the ghosts of the Haunted Hill Zone. Elsewhere, Knuckles, Tikal and Big board the zone's Ghost Train hoping to catch up with Rouge, who Big saw capture Porker with the help of some new Badniks. Suddenly, the train goes off the rails, and while Knuckles is able to glide back to solid ground carrying Tikal, he is unable to take Big too. As they wonder if Big's alive, they hear Porker screaming and proceed on foot, unaware that Rouge is watching. As she orders one of her Badniks to block off the exit, Big stirs in the wreckage of the train below, only to find Buddy addressing the Haunted Hill Ghosts, who he believes to be Drakon spirits.
Knuckles and Tikal quickly find the terrified Porker and free him from his bonds, they come face to Rouge holding a magic hourglass. If smashed, King Boom Boo, the king of the ghosts, will be summoned. Knuckles knows of King Boom Boo and his power, but cannot bring himself to surrender the Emeralds, causing Rouge to smash the hourglass. Meanwhile, Buddy's attempts to control the ghosts go unnoticed, as they are drawn to their master, who materialises before him and Big. Rouge reveals that she has blocked off all exits bar the main shaft and she'll find a way of opening the box anyway. Reluctantly, to save his friends, Knuckles tells the thief the code and opens the box for her, at which point she steals the box with the help of her Badniks and retreats, leaving Knuckles and the others to the mercy of King Boom Boo. Knuckles quickly orders them to freeze as the king of ghosts quickly appears behind them. He shortly afterwards leaves, not caring enough to attack without Rouge commanding him. Knuckles then reveals to Tikal that he not only opened the box, but raised the temperature on the thermostat, meaning the Emeralds have returned to the Special Zone. As they begin their journey home, Big and Buddy find their way out of the caves, the cat ignoring Buddy's ranting and thinking about how hungry he is, while looking at his friend and licking his lips....
- This story has two titles, the strip itself naming it as Horror in the Haunted Hill Zone, while the site's page headers name it as Horror on the Haunted Hill.
- Rouge makes her debut appearance in this story.
- The ghosts' designs change between each part of the story. In the first, they have glowing red eyes, while the second they are based far more closely on the look of the ghosts in the pyramid stages of Sonic Adventure 2.
- Knuckles' code for the Chaos Emerald box, 241192, is the short-form date of Sonic the Hedgehog 2's release date in Europe and North America.