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Grabbed By The Ghoulies's storyline progresses in chapters. There are five chapters with a different objective for them each.

Chapter 1: The Rescue: Cooper's girlfriend Amber has been kidnapped and the whole chapter involves rescuing her. Chapter 1 consists of the first 12 levels.

Chapter 2: The Restoration: When Cooper finally finds Amber, the mad Dr. Krackpot intervenes and transforms Amber into a hideous Ghoulie. The whole chapter involves finding three ingredients around Ghoulhaven Hall and returning them to Ma Soupswill who will create a cure for Amber. Chapter 2 consists of levels 13-52.

Chapter 3: The Riddle: After curing Amber, Cooper is called by Crivens to find three riddle pieces to open the door to the Baron's Quarter and the whole Chapter involves finding the pieces. Chapter 3 consists of levels 53-86.

Chapter 4: The Reckoning: Cooper enters the Baron's Qaurters to find that Crivens is actually the Baron. The whole chapter is just one room, Baron's Quarters, where Cooper must defeat the Baron.

Chapter 5: The Race: After defeating the Baron, Cooper is reunited with Amber and Mr Ribs gets the Baron's key. The chapter involves entering previous rooms through a secret passage way and freeing imprisoned children. Chapter 5 consists of levels 88-100.