Although Amanojaku does not want to help Satsuki at first, the danger soon threatens to envelop the town and it is left up to Satsuki, her friends, and Amanojaku to stop the ghosts.
In her first confrontation, Satsuki faces a demon called Amanojaku, but in the process, he is sealed within Satsuki's pet cat, Kaya.
Satsuki's mother left behind a book detailing how to exorcise the ghosts once and for all. It is soon after revealed that Satsuki's mother was responsible for sealing several ghosts who haunted not only the school but also the town, which are now inadvertently being released due to urbanization taking place in the surrounding area. On her first day of school, Satsuki, her brother Keiichirou – a first-grader, Hajime Aoyama – their neighbor, Momoko Koigakubo – an older schoolmate, and Leo Kakinoki – a classmate and friend of Hajime's with a penchant for the paranormal visit the abandoned school building adjacent the current school complex and discover that the building is haunted. Ghost Stories follows Satsuki Miyanoshita, who moves with her family to the hometown of her deceased mother.