In Spirits and Spells the player takes the role of the two kids Alicia and Greg who visit a spooky old house with their friends. Unfortunately the Bogeyman steals the souls of their friends and turns them into stone - of course the two heroes have to get them back. So they visit the Land of Dead and have to survive a cemetery, a haunted house and the lab of a mad scientist.

The player can switch instantly (but limited because it costs crystals which can be found in the levels) between the two characters which is often needed to progress in the game: both have distinct advantages and disadvantages. Alicia is disguised as a witch, is invulnerable to ice and can shrink herself. Greg on the other hand is the master of fire, is disguised as imp and has a super jump. Both have the same basic fighting abilities: hitting an enemy or jumping on their head kills them - but the same goes for the two kids which die with the first hit. Besides the fighting the game consists of platforming and simple puzzles. The game is in 3D but there is one linear path to follow (with a few junctions).