Haunted House tells the story of Mark and Danny, two aspiring filmmakers, who attempt to concoct a horror movie that initially fails, then mysteriously goes awry. A local abandoned house, with a nefarious past, is the subject of Mark and Danny's project. Rumors and urban legend state that those who enter this creepy abode never live to tell about it. Taking full advantage of the myth and spookiness of the house, Mark and Danny have rigged it with hidden cameras and effects to scare the subjects they plan to capture on film.

Greg and Erin are the subjects chosen to enter the house, while Carl and Amber are filmed in the woods nearby to catch their reactions to what happens inside the house--and to come to their rescue, if necessary. After the majority of Mark and Danny's effects fail, the project appears to be doomed. However, when they discover their behind-the-scenes effects man (Stan) dead, the fun and games suddenly become a battle for survival. Will Carl and Amber come to the group's aid or will they become hapless victims of the Haunted House?