After Jenna gives her little sister an old doll dressed in red velvet as a birthday present, the occurrence of some very disturbing events make Jenna suspect the doll might be possessed.
While Kaye and her parents are driving during a bad snowstorm to her grandmother's house on Christmas Eve, their car spins off the road and they take refuge in a house where Kaye meets a ghost in a green cloak.
On a bike outing to the abandoned houses by the old cement mill, Delsie and her friend Todd discover one of the houses is not empty--and a ghost dog haunts the area.