A "Ghoulies" comic book is found in a frat house bathroom. The comic secretly holds powers over three lost Ghoulies that are imprisoned within its pages. They are soon released by Professor Ragnar who uses them in an attempt to stop 'Prank Week' where frats play tricks on each other for a tinfoil crown. Skip Carter and his frat house of party animals are destined to take back the crown but he is having problems with his girlfriend who is dating his arch rival, Jeremy. When Jeremy frames Skip, resulting in his expulsion, the Ghoulies are sent to kill Skip and any other frats that stand in their way.