A small village with absolute scenic beauty. 

To bring added glamour to the village a tiny island (Islet) is situated surrounded by a lake from which a stream flows through the village. 

In the island there is a dilapidated ancestral house (Walauwa) which is supposed to be a haunting ground of a ghost. The villagers are in internal fear of being haunted by the ghost.

In the ancestral dilapidated house lives a elderly and a cruel man called “Dingi Gurunnanse” possessed with evil powers and he has managed to take the ghost under his spell to get the hidden treasure in the house.

There are few inquisitive alert and persuasive kids Bhagya, Tharindu and Tharaka in the village school. 

One day they happened to see the old house and comes to know the story of a ghost and the hidden treasure in the island, their curiosity makes them to find the ghost who becomes very friendly with them.

The kids escape with the ghost to the village and make merry with the other kids as the ghost was not visible to the other people. 

“Dingi Gurunnanse” comes to know that the ghost has escaped from his clutches and disappeared with the kids.

He finds the way to get the ghost under his spell back again, though the ghost detested in staying under his spell.

The children too try to keep the ghost for them selves as they derived tremendous pleasure by being with him and the battle goes on between the children and “Dingi Gurunnanse”. At last who will succeed? That for you to see the film and decide.