It has been three months since Terry Welling and his friends investigated the legend at Dr. Kaminko's house, and life in Littleroot, Maine has finally returned to normal. Or at least it started to. When the police find a body at Littleroot Lake, a reporter is convinced there is a connection between it and what happened at Dr. Kaminko's house. She believes the death and the others that follow are being caused by another local legend, the Lady in the Lake. But that's impossible...or is it?