The beautiful Arang, the daughter of a magistrate during the Chosun Dynasty, is brutally murdered. The woman returns from the dead as a ghost, still full of light-hearted mischief and spirited fun. When she meets a young magistrate, Eun Oh, she discovers that he has the unique ability to communicate with the dead. She convinces him to help her uncover her killer and bring the person to justice. Can a ghost and a magistrate team up to solve a murder mystery and punish the wrongdoer?
Arang has no recollection of who she was before she died, and asks Eun oh for help since he has the ability to see ghost. Eun oh refuses to help ghost, meanwhile he is looking for his mother who has disappeared. Eun oh ends up saving Arang from being captured.
Eun Oh saves Arang from being captured by a reaper. Eun Oh discovers that Arang has a hair pin he gave to his mother. Since Arang has no memory, Eun Oh decides to become Magistrate and help Arang find out who she was. Eun Oh discovers that Arang was the daughter of the previous Magistrate, who disappeared 3 years ago. Arang learns that she had a fiance before dying and decides to meet him.
Arang receives a dress from Eun Oh, so she can meet Lord Choi's son. Eun oh sends Lord Choi's son a letter for them to meet. Arang gets attacked by ghost and Eun Oh drops in to save her, causing reapers to appear and are unable to meet Lord Choi's son. A woman's body is discovered, who ends up being Arang. In order to find out how she died and who she was, Arang decides to set a trap for the reaper and meet Jade Emperor at all cost.
Arang meets Jade Emperor and is given another chance to return to the world of the living, in order to find out the truth behind her death. The condition is that she must find out within three moons (months), and if unable to her soul will spend an eternity in hell. Eun Oh is having a burial for Arang's body. On her way to the burial Arang bumps into Lord Choi's son. Lord Choi's son has an akward reaction when bumping into her, follows Arang and ends up helping her escape.
Eun Oh tells Arang that the hairpin she had was his mothers. They both decide to join forces in order to find out about her death and his mothers whereabouts. While Arang is sleeping, Lord Choi's son disguises himself and stabs Arang in the heart with a knife, taking her to a mountain (Eun Oh's mother is the one who orders Lord Choi's son to kill young girls with pure souls, and bring them to her). Arang wakes up and escapes from them.
Eun Oh finds his mother's hair pin in the cabin and nearby a tomb of bones. Eun oh tells Arang that they should go to the cabin to see if it might help her get her memory back. Arang goes to the cabin with hopes to regain her memory, only to remember her taking the hairpin from a woman. Joo Wal after seeing that the tomb of bones has been discovered believes Eun Oh followed him, and receives orders to kill him. Eun Oh returns to the tomb of bones and discovers seals....
While trying to remove the last seal Eun Oh falls down the cliff. Arang finds Eun Oh at the bottom of the cliff and falls down with him. Arang then finds a nearby cave where they find a Ghoul that wants to eat their liver. Reaper appears and kills the Ghoul. (Eun Oh by removing the seals opens the tomb of bones releasing the Ghouls who had been trapped there, by his mother). Eun Oh is saved by his servant Dol Soe, while trying to pull Arang up rope rips and falls down losing conscious.
After falling off the cliff, Arang is found unconscious by Ju Wal and taken to his room to rest. Meanwhile, Eun Oh is desperately searching for her. Arang wakes up and comes close to finding Eun Oh's mothers hideout. Eun Oh's mother reveals to Ju Wal the reason for wanting Arang; Arang's body is immortal and if she acquires her body she can live for ever. Tomb of bones and remains are covered up/burnt by Lord Choi's orders. Eun Oh infuriated, summons Lord Choi to his office.
Lord Choi summoned by Eun Oh, comes to pay him a visit and is questioned for the concealment of the tomb. Lord Choi lets everyone know that Eun Oh is an illegitimate son, because of that he will not respect him as Magistrate. Lord Choi then hires men to attack Eun Oh and Arang. Meanwhile, Arang sees a ghost being taken by two suspicious looking men and follows them. Arang ends up being attacked by them and Eun Oh and Reaper Moo Young jump in to save her.
Eun Oh goes to Lord Choi's house and demands them to release a slave they have imprisoned. Lord Choi gives in to Eun Oh's threats and releases the slave. Arang goes on a walk with Joo Wal, ends up buying her clothes and food. On their way back, Eun Oh takes Arang with him for a horse ride. Arang reveals to Eun Oh she only has 2 moons left before she dies.
Eun Oh wakes up and finds Reaper Moo Young with his mother's hairpin, Reaper wants to know how/where Eun Oh got the hairpin/fan from. Arang arrives and Moo Young disappears. Arang and the Shaman get kidnapped by Lord Choi's men. Arang ends up getting slashed by a sword and Eun Oh kisses Arang telling her he was "sharing his breath" to help her gain conscious. Eun Oh then finds the talisman from the tomb of bones, Arang tells him she has seen the same marking at Lord Choi's residence.
Eun Oh finds the same talisman at Lord Choi's house and is surprised by Joo Wal who tells him it is a sacred family shrine. Eun Oh is determined to find what Lord Choi is planning and to help Arang brings some ghost to spy on him, but are unable to enter his home since there is some kind of barrier blocking them. Moo Yeon (evil shaman) tells Joo Wal he must "cut out his feelings for Arang" and bring Arang to her. Joo Wal's feelings get in the way and is unable to stab Arang once again.
Eun Oh and Arang visit the shaman to learn more about the talisman and learn that it creates a "closed space"; real purpose is to block the heavens and not only to keep ghost away. Determined to find out what Lord Choi is hiding, they both go to his home. Eun Oh enters Lord Choi's home and finds Moo Yeon's secret underground passage, finds a weird looking pot and takes it with him. Waiting outside Arang is surprised by Joo Wal and Moo Yeon, who presents her as his aunt.
Eun Oh refuses to hide his feelings for Arang and reveals his true feelings for her. Moo Yeon discovers that someone has entered her shrine and taken one of her pots. Eun Oh and Arang have the Shaman open the sealed pot releasing an evil demon that attacks Arang wanting her body, which Eun Oh destroys with his fan. Eun Oh then demands Moo Young to tell him why is a ghost after Arans's body? Moo Young reveals to him that if a spirit possesses Arang's body it can live an eternity.
Eun Oh is surprised to find his mother in the shrine. Moo Young attempts to end his sister's life but is stopped by Eun Oh, who protects her thinking she is his mother. Moo Yeon escapes leaving them with her demons. Confused Eun Oh goes to Lord Choi for an explanation about his mother, Lord Choi tells Eun Oh that he has nothing to do with her evil doings. Eun Oh comes to the conclusion that his mother's body is being possessed by a "monster" and is determined to find out the truth behind it.
Determined to find out the truth about his mother, the magistrate searches out one of Lord Choi's old servants who tells him about how his mother mysteriously disappeared from Lord Choi's house. Secrets are revealed about young lord Joo Wal leaving him in agony. Eun Oh employs the ghosts to again spy on Lord Choi and they come across Moo Yeon's new hiding place. When Eun Oh and Arang confronts the 'monster' again, Arang remembers how she died and who killed her.
Arang reveals her true feelings to the Magistrate. Arang learns how to get Moo Yeong out of the Magistrate' mother's body. Wal Ju starts to regain memories of his past sins. Dol Sue is given a promotion. The Shaman gains full ability to see and hear ghosts. Lord Choi causes more problems for the Magistrate.
Eun Oh and Dol Swe are arrested. Mu Yeon asks Arang either take revenge or save people. Arang doesn't answer her. She doesn't understand why Joo Wal and Mu Yeon are on the same side. Eun Oh admits everything is in order to protect Arang. At that time, Eun Oh's father step in with an imperial edict. Saying that he is not a criminal and his social status remains unchanged. Arang makes her way to meet Mu Yeon.
Eun Oh is rushing his way to stop Arang who gives up on herself. Arang wants Mu Yeon to promise that she will leave Eun Oh's mother's body. Joo Wal appears and tells Arang that Eun Oh's mother won't survive even if their body is swapped. Mu Young tries to kill Mu Yeon with his knife but he fails. He wants Eun Oh to get rid of the devil and tells him that he can't save her mother. Mu Yeon starts gasping and struggling. Her body is overtaken by Eun Oh's mother. With Jade Emperor's permission, Eun Oh as well as Mu Young frees his mother's soul.
At the end, Mu Yeon fails to own Arang's body. Instead, she is killed by Mu Young. The hairpin vanishes from Eun Oh's mother's chest. Eun Oh runs, carrying her on his back, seeking medical treatment. His mother knows that her time has come and she asks him to stop and say her last goodbye. After settling the funeral, Arang and Eun Oh go to the river's edge to find the truth. Eun Oh holds her hand and confesses to her. Both of them find it difficult to lose one another.
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