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Sherlock Holmes (Basil Rathbone) and his befuddled assistant, Dr. Watson (Nigel Bruce), visit a tiny village to investigate a series of ghastly murders -- which, local lore posits, may augur the reappearance of a legendary ghost. But Holmes suspects that the culprit is really a local, so he sets an ingenious trap to learn the true identity of the "ghostly" killer.