In a small suburban town in Tarrytown, New York, a lonely and imaginative young girl named Amy Reed struggles to connect with the world around her. Her father, Oliver Reed, tries to provide her with a rationalistic upbringing to shield her from the tragic past involving his late first wife, Irena. Amy's vivid imagination and wish for companionship lead her to form an unusual friendship with the ghostly apparition of Irena, who appears as a comforting and protective figure. Amy's fanciful stories are dismissed by her concerned parents, who begin to worry about her grasp on reality, pushing her further into isolation.

As tension mounts within the Reed household, Amy also encounters Julia Farren, an aging actress who lives in a nearby mansion with her jealous and bitter daughter, Barbara. Julia embraces Amy's whimsical nature, which further complicates the child's emotional state. Amy's eerie connection with these spectral and eccentric figures propels her into a series of events that challenge her family’s understanding of love and reality. The story delicately explores themes of imagination, loneliness, and the fine line between fantasy and delusion within a hauntingly beautiful setting.