A chicken from outer space fights Courage, while Muriel cooks Eustace some strange eggs for breakfast that she got from the outerspace chicken. Eustace turns into a chicken, and Courage shoots both the alien chicken and the Eustace chicken with a laser gun.

Two teddy bears in a spaceship land on Earth to look for a worm. One is quite handy with a laser gun. Courage plays the horn and it attracts a worm, which just happens to be the worm that the teddy bears are after. When Muriel won't tell them where it is, and the teddy bears blow up part of their house. The worm comes and it turns out he is a giant blue worm from outer space that eats the teddy bears as well as Muriel. The worm belongs to a giant...

When Courage finds a mysterious amulet while digging through the yard, a Ghostly Fog covers the farmhouse. Eustace, however, refuses to return the amulet that apparently belongs to the Fog Ghost's long lost love. Now Courage must protect his family from the vengeful fog spirit.