Teenagers are killed after a neighborhood is built on top of an Aboriginal burial ground.
Tracy Hocking is dreaming that she is walking through a storm drain tunnel when she comes across some Aboriginal Dancers. The Aboriginal Dancers disappear and Tracy goes further into the storm drain which leads to a cave. She walks into the cave and The Kadaicha Man dances and then his face turns into a skull and he gives Tracy a Kadaicha stone and she wakes up. She turns on her lamp and finds the stone from the dream nearby. A radio host gives a report on a gang attack and the performance of the Salvation Army at the Carabingy shopping complex. Gail Sorenson accidentally steps in Hannibal's food bowl. Alex Sorenson says good morning to Gail and she complains about him feeding Hannibal in the kitchen. Matt Taylor picks up Gail in his car and they pick up Tracy. They go to school and turn their assignments in to Mrs. Millhouse. Tracy tells Gail, Matt, Fizz Dryden, and Shane about her dream. Shane takes the stone and tosses it to Deb Hartley who hands it back to Tracy. Mrs. Milhouse asks to see the stone and she tells the class about Kadaicha stones and how if someone was given one then they were condemned to die. Tony Pirello makes a joke about it and Tracy tries to give him the stone.
In the evening time, Tracy and Tony are kissing when she tells him that she is late going home. She tells Jeff Cross and Deb that they need to leave and to get into the car. Tony drops Tracy and Deb off at Deb's house. Gail sees Alex on his date with Gloria and tells him that she is going to Fizz's house. As Tracy is walking home from Deb's house, she is attacked and killed by a dingo. Gail hears Tracy scream and tells Alex who goes to take a look with her and Gloria. They then find Tracy's body. Alex is questioned by by the police and Constable Todd sees Gail pick up the Kadaicha stone and tells her to leave it where its at. Franky Boland has a dream similar to the one Tracy had and wakes up with a Kadaicha stone on his pillow. The next day at school, the students talk about Tracy's murder. Franky then shows Gail, Fizz and Deb the stone he found. Gail and Fizz ask Mrs. Millhouse more about the Kadaicha stones and she tells them that their neighborhood was built over an aboriginal burial ground. Gail confronts Alex about the neighborhood being on a burial ground, but he denies it. Fizz calls Gail and tells her she found some information while going through newspaper clippings at school.
Gail and Matt go to the school and see newspapers spread out on a table. They read them including an article in which Billinudgel says that the new residents will live under a curse. Fizz asks them what they think about what Billinudgel said and then Franky walks into the room. He tells them that he is going to do research for a while and the others leave. Matt drops Gail and Fizz at home and as Gail is walking to her door, Hannibal starts barking. Billinudgel walks up to Gail and asks to speak to Alex. He tells her that if she stays, more white people will die and then leaves. While at the library, Franky sees a spider which attacks him and bites him in the eyeball. Franky then screams and collapses. Fizz has the same dream as Tracy and Franky and then finds a Kadaicha stone next to her. Mrs. Millhouse goes to the school and finds Franky's body. Gail, Matt and Fizz go to school and see an ambulance and Mrs. Millhouse pulls Gail and Fizz aside and tells them that in the past a group of young Aboriginals were raped and killed by bush rangers. The tribe from where the Aboriginals came from buried them in what is now the location of the neighborhood and then attacked a white settlement. They were then hunted down and killed to the last member. She then tells them if they start telling others about the stones then history might repeat itself.
Detective Rose shows Sergeant Hanley a Kadaicha stone that was found near the body of Franky. Gail, Matt, Fizz and Shane go to the beach and they are given a police escort consisting of Constable O'Bersky and Constable Pritchard. Fizz sees the storm drain and remembers it from her dream. They go inside of it, but come to the end of it. They go to swim in the river and while they are swimming, Fizz is attacked by a large eel and dragged away. O'Bersky and Pritchard wade into the water and help the others search for her, but they can't find her. Detective Rose questions Gail and Matt and Matt describes it as a snake or octopus. Fizz's body is then found by O'Bersky and Pritchard. During the night, Gail dreams about the storm drain, the cave and The Kadaicha Man. She calls Matt and they go into the storm drain and break into it with a pick axe and find the cave from the dream. Inside the cave is a skeleton. As they are leaving, they are caught by a Security Guard who brings them to his office and calls Alex. Matt accuses Alex of not telling the authorities about the cave and threatens to call the Heritage Commission. Alex admits that he knew about the cave and eventually gives Gail Billinudgel's address.
Mr. Fitzgerald tells Mrs. Millhouse that he still plans on having the school dance. Matt and Gail go the address and Lisa answers the door. She at first tells them that Billinudgel isn't there, but then gets him. He tells Gail that once she received the stone, there was nothing she could do as the spirits would follow her. Lisa asks Billinudgel to help Gail and he gives Gail a Spirit stone. As Gail and Matt are leaving, Detective Rose pulls up and asks them if they have seen Billinudgel and they lie and tell him no. At the preparation for the school dance, Shane has difficulty focusing while practicing his and Matt's new song. Mr. Fitzgerald complains to Deb about how much noise bands nowadays make. Gail goes to the restroom and the stall doors start to slam open and shut and the door won't open. The living dead bodies of Tracy and Fizz appear and talk about the dance. Girl No. 1 and Girl No. 2 walk into the restroom and ask each other what they are going to wear to the dance and then leave. Gail runs out of the restroom when a hand grabs at her from the floor drain.
Matt drops Gail off at home so he and Tony can go speak with Billinudgel. Matt asks Billinudgel to help Gail and then leaves to go back to Gail's house while Billinudgel and Tony take a shortcut. Gail hears Hannibal barking and Alex goes to check. Billinudgel brings Tony with him to the cave. When Alex goes into the garage, the door shuts and won't open. Billinudgel starts dancing in front of the remains of The Kadaicha Man. Matt tells the police that he heard some noises coming from the park and they leave. Hannibal suddenly stops barking and when Gail checks on him, he is dead in the pool. Matt rings the doorbell and Gail lets him in. Matt's eyes change and he attacks Gail. He starts to choke her and Alex tries to stop him, but Matt tosses him away. Billinudgel continues to chant and the bones of The Kaidaicha Man start to burn and Matt returns to normal. Later, Billinudgel warns Alex that more people will die if the neighborhood stays. Meanwhile a Doctor looks over Matt. The radio news reports that the neighborhood will have to be moved due to fractures in the underlying sandstone as Workman No. 1 and Workman No. 2 patch up the hole to the cave.