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Cody Mack's misdeeds land him in a reformatory school, where he soon discovers that the principal and teachers are actual monsters with a sinister plan to alter the boys' brains.

When Headmaster Farley's estranged sister takes over Splurch Academy, Cody and the other boys are pitted against their new classmates, the girls of Priscilla Prim Academy for Precious and Proper Young Ladies.

Escaping the Splurch Academy infirmary using stolen keys, Cody Mack and friends prepare for Halloween and try to figure out Cody's dreams about a giant beetle that seems to be turning him into a monster.

When Cody Mack and the boys uncover an old, forgotten swimming pool hidden below the floor of Splurch Academy's gymnasium they think it may provide them with an escape route, but the pool is overflowing with evil, monstrous squids.