The American Minister to the Court of St James's, Hiram B. Otis and his family move into Canterville Chase, an English country house, despite warnings from Lord Canterville that the house is haunted. Mr. Otis says that he will take the furniture as well as the ghost at valuation.
The Otis family includes Mr. and Mrs. Otis, their eldest son Washington, their daughter Virginia and the Otis twins. At first, none of the Otis family believes in ghosts but shortly after they move in, none of them can deny the presence of Sir Simon de Canterville. Mrs. Otis notices a mysterious bloodstain on the floor and comments that "She does not at all care for bloodstains in the living room", Mrs. Umney, the housekeeper, tells her that the bloodstain is evidence of the ghost and cannot be removed. Washington Otis, the eldest son, suggests that the stain will be removed with Pinkerton's Champion Stain Remover and Paragon Detergent. When the ghost makes his first appearance, Mr. Otis promptly gets out of bed and pragmatically offers the ghost Tammany Rising Sun Lubricator to oil his chains. Angrily, the ghost throws the bottle and runs into the corridor.
The Otis twins throw pillows on him and the ghost flees. The Otis family witnesses reappearing bloodstains on the floor just by the fireplace, which are removed every time they appear in various colours. Despite the ghost's efforts and most gruesome guises, the family refuses to be frightened, leaving Sir Simon feeling increasingly helpless and humiliated. The Otises remain unconcerned. The ghost falls victim to tripwires, toy peashooters, butter slides and falling buckets of water. The mischievous twins rig up their own "ghost", which frightens him. Sir Simon sees that Virginia, the beautiful and wise fifteen-year-old daughter, is different from the rest of the family. He tells her that he has not slept in three hundred years and wants desperately to do so. The ghost tells her the tragic tale of his wife, Lady Eleanor de Canterville. Virginia listens to him and learns an important lesson, as well as the true meaning behind a riddle. Sir Simon de Canterville says that she must weep for him, for he has no tears; she must pray for him, for he has no faith and then she must accompany him to the Angel of Death and beg for Sir Simon's death. She does weep for him and pray for him and she disappears with Sir Simon through the wainscoting and accompanies him to the Garden of Death and bids the ghost farewell. The story ends with Virginia marrying the Duke of Cheshire after they both come of age. Sir Simon, she tells her husband several years later, helped her understand what life is, what death signifies and why love is stronger than both.
