Three children befriends a friendly ghost who is named as kuttichathan (meaning little ghost in english and changed as chhota chetan in hindi). A cruel magician (kottarakkara sridharan nair) wants chathan to lay hands on a treasure.Even though magician is a owner of chathan, he is burnt and killed by chathan in the climax.Chathan turns into a bat and flies away (in hindi version Chhota Chetan it is shown that urmila gets chathan and keep it with her, scenes of urmila motondkar has been re-shoted for hindi version).