- "Look out for wee ghosts! They make strange things happen!"
"Watch out for naughty gnomes, they'll climb down your funnel!"
- ―Donald and Douglas
Every year, the railway staff take part in a contest to find Sodor's most beautiful station. All the stations are decorated with flowers, shrubs and colourful hanging baskets. The engines love this contest.
One evening, the Fat Controller instructs Percy to collect a special load from Maithwaite. Percy is worried; Maithwaite is near an old haunted mine. The Fat Controller insists that there are no such things as ghosts.
Percy is still worried when he sets off for Maithwaite the next day. On the way, Percy passes Donald and Douglas who tease poor Percy. They tell him about ghosts and naughty gnomes which go down funnels.
By the time Percy reaches the old mine, it is very foggy. Suddenly, Percy spots some strange figures up ahead. His driver reassures him that the figures are just garden gnomes to decorate the stations with which they have come to collect. Percy waits for something spooky to happen while his driver and fireman collect the gnomes, but nothing happens. Percy happily sets off to deliver the gnomes to Lower Tidmouth.
The next morning, the Fat Controller is waiting to greet Percy at Lower Tidmouth. The Fat Controller thanks Percy for collecting the gnomes and says that Lower Tidmouth has won the most beautiful station competition. Percy is very proud and promises to remember that there are no such things as ghosts in future.
- Donald and Douglas
- Sir Topham Hatt
- Thomas (cameo)
- Henry (cameo)
- Gordon (cameo)
- James (cameo)
- Nancy (cameo)