Mr. E informs the gang that a mystery is waiting in the nearby ghost town of Gatorsburg. The theft of their engine prompts them to check into the local hotel. A sinister messages appears to Scooby, who is later forced to spend the night in the Mystery Machine. He’s attacked by gator people, and leads them back into the hotel where they chase the gang, only stopping once the gang steps out of Gatorsburg. The gang returns, and realizes that the gator people are passing artificial gatorskin products off as real. They reveal that the gator people are the only three residents of the town (the hotel’s owner, her son, and her brother, the mechanic).