"Groovy Ghosts" is the first segment of the twelfth episode of The Archie Show. It originally aired on CBS on August 30, 1968.
The segment opens with Archie greeting the viewers and offering them to join the rest of the gang in the library during study period, saying that Veronica has some "groovy" news for them. In the library, the news is that Veronica's dad is giving them a clubhouse of their own. Veronica claims that it may be old, but it can be fixed up. Betty likes the idea, but Reggie doesn't like the thought of work. Where is this new clubhouse? An old house, formerly owned by a person or family known as Smythe, outside the town.
But Jughead reveals that the house is also known as The House on Creepy Corner, due to rumors about the house being haunted. Archie claims that the rumors are just hearsay, but Jughead says that he believes the stories. Archie then suggests that they head over there that night and look it over. That night, they head over to the outside of town and the gang heads inside, save for Jughead and his dog, Hot Dog. But they soon change their minds when an owl hooting scares them silly. Reggie gets an idea when he sees Jughead running scared, if everyone else were as scared as Jug, they would forget about the clubhouse and save them a lot of work.
Reggie then starts to look around the house, knowing that there are supposed to be secret doors and passages inside. Meanwhile, Archie comforts the girls by letting them both take one of his arms. Jughead says that he'd feel better if they'd head for home, and just before Archie can say something, Veronica gets spooked when she spots something big and white. Everyone else sees it too, and Jughead thinks it is a ghost, and everyone but Archie panics. Archie then pulls the sheet off the "ghost" and reveals that it's nothing but cans of paint under a tarp. Hot Dog thinks that maybe the ghosts are gonna fix the place up for themselves, but Veronica remembers that her dad said that he would supply the paint for them.
Archie tells Jughead to stay calm and they keep moving, but Jughead decides to stay right where he stands. But he soon regrets his decision after asking a question to a portrait, and the portrait answers back. Jug and his dog run for their lives, with Jug running right into a curtain, scaring Veronica and Betty and grabbing Archie's attention. Jughead soon trips, gets scolded, and explains what happened, while Reggie revels in his triumph. Jughead continues to move on with the gang, but soon, he and Hot Dog fall down a trap door. Right after, a thunder storm rolls in, spooking the others.
Soon, Veronica spots a shape in the window, with Betty adding that it's looking right at them. Archie, though a little spooked, says that there is probably a logical answer, and they soon realize its Jughead and Hot Dog. After they get back in the house, wondering how they got out there, Veronica starts to second-guess her father's idea to turn the House on Creepy Corner into a club house, with Betty admitting that the place is, as the name suggests, creepy. Archie disagrees, saying that they are letting their imaginations run away from them, and spots Jughead and Hot Dog shaking in fear, immediately asking what is up. Jughead points to a walking suit of armor. The others take notice and run, though Archie claims that it is just someone trying to scare them, but Jug claims that it is the ghosts that are scaring them.
Turns out the man behind the suit of shining armor was Reggie, who decides to sneak out to the car so they don't get suspicious. Archie manages to calm the gang down, telling them that it was probably someone's idea of a prank, and then points out that Reggie is missing. The gang notices, and heads to the car, only to find Reggie sitting there. Jughead then states that there really were ghosts in the house, but Archie doesn't know what to think. Veronica suggests they forget the whole thing, but Jug notices that Hot Dog is missing, so they go inside to find him. While they search, Reggie sneaks in through a window and prepares for the "grand finale".
Meanwhile, as the gang looks for Hot Dog, they suddenly hear a thumping sound that sounds eerily similar to a heartbeat, and Jughead points out that it's coming from right behind them. But Archie looks behind them, and finds that it is just Hot Dog's tail thumping against the wall. Soon, Betty starts believing what Archie said about their imaginations running away from them. Veronica agrees, but Jughead asks about that walking suit of armor from earlier, and something else creepy that he immediately spots, a ghost. Everyone but Archie screams, and Archie, saying that he does not believe in ghosts, charges at the ghost and finds that there's no one under the sheet. This makes Archie start to believe in ghosts.
Unknown to them, the "ghost" is actually a puppet controlled by Reggie. As chaos ensues, Archie ends up falling through a secret door and into a secret passage. Archie notices what happened, climbs up a nearby ladder, and finds out that Reggie was the one behind the hauntings. Reggie, satisfied with his work, tosses the sheet (unknowingly) onto Archie and turns around to head down stairs to see if the gang is ready to leave. But he soon spots Archie, now dressed like a ghost, who gives him a real fright. Soon, Archie makes Reggie confess why he was "impersonating" a ghost, and Reg says he will do anything to repay him.
Later, Archie tells the gang the whole story, adding that he made sure Reggie gets the club house ready by morning, Betty and Veronice admire his work, saying that he makes a "groovy" ghost, as Jughead dances around with Archie's costume, with Hot Dog giving a final "oh brother" as the segment ends.