Kirrin Cottage becomes noisy and chaotic when Professor Hayling and his Son Tinker come to stay, upsetting Unle Quentin. So Julian, Dick, Anne, George and Timmy the dog go to stay with Tinker in his lightohouse at Demons Rock. They are intrigued when delightfully grizzle faced salty old sea dog Mr Boogle tells them a tale of wreckers' gold hidden in nearby caves. He takes them on a tour of the caves and Tinker's monkey Mischief finds a gold coin.
Descendants of the wreckers, Jacob and Ebenezer, now show tourists through the wreckers' cave. Jacob burgles some items from the lighthouse and also steals the key. When the children visit the cave, Mischief discovers a gold coin. Later, Ebenezer and Jacob lock the children in the lighthouse to prevent them from returning to the cave to hunt for the treasure, but Julian and Dick enter the cave network via a tunnel and discover the treasure. Unable to reach the mainland because of the rising tide, they return to the lighthouse, light its lamp and ring an old warning bell amid a fierce gale to alert the villagers to their fate.