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In Carnival of Souls a drag race turns to tragedy when one car, with three young women inside, crashes over a bridge and into the river below.
The authorities drag the river, but the search is fruitless and the girls are presumed dead until a single survivor stumbles out of the water with no recollection of how she escaped. Mary Henry (Candace Hilligoss) decides to forget her strange experience and carry on with her plan to move to Utah to accept a job as a church organist. She rejects the notion that because her profession leads her to work in the church, she is obligated to worship as part of the congregation, and this cold approach to her work unnerves many around her. While driving to the new city, she experiences weird visions of a ghoulish man who stares at her through the windscreen, and passes an abandoned carnival on a desolate stretch of highway to which she feels strangely drawn.
Mary tries to live her life in private, ignoring invitations to worship by the minister of her church, and the leering propositions of a neighbour. Soon the ghostly apparition from the highway is appearing more often, and she experiences eerie spells in which she becomes invisible to people on the street. A doctor tries to help, but he too is rejected, and eventually Mary realises that the deserted carnival holds the secret to her destiny.