With the help of Mr. Dean, Sister Clodagh and the Sisters of St. Faith run a school at the mysterious palace of Mopu in the Himalayas; but some believe the place is haunted.

Sister Clodagh is losing control of the convent; feelings arise between Clodagh, Ruth and Mr. Dean at the Christmas party.

Dilip Rai and Kanchi are discovered together; Clodagh and Ruth clash over Mr. Dean; all the nuns confront their desires with tragic consequences.