A mysterious dream drives Zagor to reach an Indian village on the Atlantic coast and to contact a young Nipmuk shaman, Nuan-Teh, who is likewise alarmed by strange events and disturbing premonitions.
Unsettling clues seem to indicate that Stephan, the Priest of Evil previously confronted by the Spirit with the Hatchet, is seeking revenge from beyond the grave.
In fact, he has returned to life in a new form, transferring his spirit into the body of a bandit named Syd. The necromancer has gathered his followers in an abandoned old English fortress, built on a rocky outcrop off the Atlantic coast.
On his way to the Nipmuk village, Zagor discovers that Abraham Stoke, descendant of a witch-hunter who had helped him defeat Stephan the first time, has been killed by the followers of Haggot. Upon reaching the encampment, Zagor and Chico meet the young shaman Nuan-Teh, who, using his powers, discovers that Stephan is in the vicinity of the village of Salt Town.
The three reach the village, and because of an overzealous sheriff, Chico and Nuan-Teh are captured by Stephan’s men and taken to his fortress.
The Spirit with the Hatchet, having escaped capture and allied himself with the Pennacook Indians, manages to reach the enemy’s lair, only to discover that Stephan has taken possession of Nuan-Teh’s body thanks to a medallion/talisman that turns whoever wears it into a vessel for the evil priest’s soul.
Zagor is captured and, together with Chico, witnesses the ritual through which Stephan manages to physically summon the demon Haggot; then, placing the talisman around his neck, he takes possession of the demon’s body and begins absorbing the life force of his followers. One of them, coming to his senses, manages to free Zagor, who tears the medallion from Stephan/Haggot’s neck and throws it into the sea.
In this way Haggot returns to his world of darkness, Stephan’s soul remains trapped in limbo, and Nuan-Teh fortunately regains full control of himself.