Old man Nebbercracker's house has come alive and threatens to eat anything that comes close to it, With Halloween fast approaching, the unaware neighborhood children are in danger of being made into a snack for the possessed house. However three of the neighborhood children, DJ, Jenny, and Chowder, are aware of the malevolent house and plan on putting a stop to it before it's to late.

In Monster House, players explore the innards of this haunted house, which is made up of several floors, including having a basement, attic, furnace, and a roof which will all be visited on the players march to defeat the house. Since the house doesn't want to risk flooding itself, it won't attack in the bathroom area and these are made into save points for the player.