An American family moves into a haunted British estate, triggering a clash between traditional supernatural terror and modern pragmatic skepticism. Mr. Hiram B. Otis and his family purchase Canterville Chase, disregarding warnings about the resident specter, Sir Simon de Canterville. The ghost attempts to maintain his reputation as a terrifying apparition, but he finds his efforts thwarted by the family's refusal to be frightened and their practical, often dismissive, reactions to his haunting attempts. The narrative follows the ghost's struggle to reclaim his dignity against the backdrop of a changing social order. Wilde utilizes a third-person omniscient perspective to highlight the absurdity of both the aristocratic ghost and the boisterous American newcomers.

Readers frequently highlight the clever subversion of horror conventions, noting how the story prioritizes humor over genuine dread. Discussion often centers on the social commentary embedded within the interactions between the American family and the aristocratic ghost. Critics observe that the narrative effectively balances its comedic tone with a surprisingly poignant conclusion. Many readers appreciate the brevity of the work, finding it an accessible entry point into the author's broader body of writing. The story remains a frequent subject of analysis for its critique of national character and its exploration of the supernatural as a vehicle for moral growth.