Ollie Dee and Stannie Dum try to borrow money from their employer, the toymaker, to pay off the mortgage on Mother Peep's shoe and keep it and Little Bo Peep from the clutches of the evil Barnaby. When that fails, they trick Barnaby, enraging him.
The mysterious Count Orlok summons a happily married real estate agent to his castle, located up in the Transylvanian mountains, to finalise a terrifying deal.
Francis, a young man, recalls in his memory the horrible experiences he and his fiancée Jane recently went through. Francis and his friend Alan visit The Cabinet of Dr. Caligari, an exhibit where the mysterious doctor shows the somnambulist Cesare, and awakens him for some moments from his death-like sleep.