The starts with Amanda Benson , who is 12 years old and her younger 11 year old brother, Josh moving to a new house in a neighborhood named DarkFalls. Amanda and Josh are very upset even though their house is only 4 hours away. A week before their house change their father got a letter from a lawyer telling him that he now has a house belonging to his Great Uncle Charles. Strangely no one in the family recognizes that name or relative. Mr.Benson was looking for an excuse to quit his office job(boring, reffered by him) and do what he really wants to: Writing. The couple does not really care if they know anyone named Charles and without hesitation pack up.
When the family(finally) goes to DarkFalls for ther 1st time they meet up with a real estate agent named: C.D.(Compton Dawes) and look at their new house. Amanda and Josh and their dog, Petey don't like it and also feel something is wrong. Even though it is July the entire neighborhood is covered with darkness. Finally there's the house. Its large, dark with 2 large bay windows. Josh starts whining about the sudden change in his life, Amanda watches, shocked when she sees a boy in her doorway and suddenly dissapears.
Amanda is feeling much better after seeing and discovering her room. She goes outside to call Josh and tell him about the house but he is gone! She sees him a few minutes later in a cemetery where he is being chased by someone! Later Amanda sees strange kids and hears strange noises. Even her new friends are sort of weird. Much later it's revealed her somewhat "new" friends are actually DEAD and they had been killed while living in the exact same house where Amanda and Josh were currently living in. The dead children kill Petey firse because they know that the dogs always sense the dead peoples presence first. Ray( dead child) attacks Amanda while Josh is still stubbornly looking for Petey, but saves her from him at the last minute. He saves her by flashing the flashlight at Ray's face causing hime to melt and die again. Then Amanda and Josh run home only to be encounterd by the dead kisds... again. They tell them the house they live in is called Dead House and the dead people always need new dead blood to stay alive for a year. Randomly, C.D appears and the dead kids vanish and C.D tells them that he has hidden their parents so the dead people couldn't get them.
On their way to the cemetry Josh and Amanda see a gravestone: C.D. Revealing he is dead. When they tell C.D they know the truth about him he says that long time ago the town was infected by a yellow poisonus gas that killed everyone and now it belongs to the Living Dead. Josh(again) kills C.D by shining the flashlight in his face. Then Amanda and Josh go to save their parents. Their mom and dad are in an amphitheater and the dead people are waiting to feed on them. Josh and Amanda push the tree that covers the amphitheatre causin the dead people to die ... again. Amanda and Josh save their parents but as they are leaving they see a new family getting ready to move in to the house and the real estate agent is C.D
Amanda and Josh 1st go to Dead House 'Amanda and Josh escape Dead House Amanda and Josh 1st meet the dead people
R.L Stine was going to release Happy Holidays From Dead House for Goosebumps Gold but was never released because Scholastics and R.L. Stine's contract was cancelled.