Following the death of Lady Lillian Penrose in a small Canadian village, Holmes investigates, despite the locals blaming the murder on a glowing, murderous phantom. Holmes establishes that Lady Penrose was Lillian Gentry, a former actress who had left acting after one of her fellow actors committed a murder. Further investigation and deduction from Holmes shows that an ex-judge also lives in the town: he had overseen the case of the murderer. The local hotel owner was a former prison guard who also knew the killer. After the judge and hotel owner's daughter are also killed, Holmes sets a trap for the murderer, who had been living in the village for the previous two years disguised as a postman. The murderer also tries to kill Holmes, but fails, before running off into the fog, where the hotel owner finds and kills him in revenge.
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