The makeup and special effects are really good and pretty creepy, but that's about it. There are also a few jump scares.
Maestro (Michael Jackson) tries throughout the film to scare the villagers, which includes calling up a family of scary ghosts, turning himself into a skeleton, possessing and transforming the mayor into a disfigured, twisted ghoul, pulling his face into bizarre formations, smashing his hands and face into the floor (which then shatter as if stone), becoming part of the wall, morphing into a hideous 'super ghoul,' scaring the villagers in a skeleton costume, controlling what we assume is magic, ripping his face off to reveal a skull and eyeballs, and shutting the doors on the villagers repeatedly.
The ghouls and ghosts in the movie are a little unnerving; there is a scene with close-ups of their faces, showing the detail of their demonic costumes.
Throughout the film, there are flashing lights, thunder, and lightning.