Boss Hogg rents the Hazzard jail out for $10,000 to an old friend, Black Jack Bender and a group of syndicate kingpins where the hold a conspiracy meeting. When Bo and Luke find a lot of artillery in their cars, they get suspicious and investigate and find them out. But they must get to a phone and call the FBI before they get to them.

The General Lee is stolen by two pool hustlers who drive it into the pond while being chased by Rosco. Unaware that it wasn't Bo and Luke driving it, he thinks Bo and Luke drowned. Boss Hogg schemes to claim they stole his genuine gold watch and chain and when Bo and Luke hear of this, they figure the only way to prove their innocence is to haunt Boss and Rosco by making the General Lee look like a ghost.