- Squidward Tentacles
- Squidward's bonsai (debut; cameo)
- SpongeBob SquarePants
- Patrick Star
- Flying Dutchman (debut; cameo)
- Fish in magazine
- Sandy Cheeks (cameo)
- Eugene H. Krabs
- Seagulls (debut)
Squidward has just finished a wax sculpture of himself and declares that he has "conquered all artistic media." He is annoyed by SpongeBob and Patrick, who are playing a loud game, and goes to take a bath. SpongeBob and Patrick begin tossing around a shell, but it flies into Squidward's house and knocks over the wax sculpture. The two think they have injured Squidward, and after several humorous attempts to "resuscitate" him, they believe that Squidward has perished.
Having finished his bath, Squidward dramatically emerges from the bathroom in a rush of steam, wearing talcum powder and a white bathrobe. SpongeBob and Patrick believe that they are seeing Squidward's ghost, and, hoping to evade his "ghostly anger," promise that they will do anything he says. Squidward, instead of telling them he is not dead, gleefully plays along in order to have them pamper him and do his chores.
When instructed to clean out one of Squidward's "messy" rooms, the two come across a comic book about the Flying Dutchman, who haunts the seas because his body was used as a window display in a clothing store and was never put to rest. They decide that since Squidward is a vengeful spirit, they must put him to rest. Despite Squidward's protests, SpongeBob and Patrick arrange a proper burial for him and invite people over to mourn him.
Squidward eventually admits his charade, but SpongeBob and Patrick believe that he is simply in denial about his death. SpongeBob blows a giant bubble that encapsulates Squidward and sends him floating right out of the water, up to "the great beyond." Squidward is last seen high in the air and surrounded by seagulls, which only adds to his discomfort.
|( ‣ ) Associated production music|
|( • ) Original music|
|( ◦ ) SpongeBob music|
‣ Tales from the Swamp (a) - Ron Goodwin [title card]
‣ Smoke and Dreams - Otto Sieben [opening]
‣ Hilo March - The Hawaiian Serenaders [SpongeBob and Patrick play games.]
‣ Bossa Cubana - Gerhard Narholz [Squidward takes a bath.]
• Seaweed 1 - Steve Belfer [SpongeBob and Patrick are tossing a shell back and forth.]
‣ Bossa Cubana - Gerhard Narholz [Squidward hears a thump.]
• Seaweed 1 - Steve Belfer [SpongeBob and Patrick enter Squidward's house.]
‣ Lovely Scenery C - Mladen Franko ["Squidward! Ahhh!"]
‣ Bossa Cubana - Gerhard Narholz [Squidward puts on a towel.]
‣ Dangerous B - Mladen Franko [SpongeBob and Patrick attempt to put the sculpture back together.]
‣ Dramatic Cue (h) - Ronald Hanmer [The sculpture's eyes turn over.]
‣ Deep Grief 1 - Otto Sieben ["He's pushing up daisies!"]
‣ Tales from the Swamp (a) - Ron Goodwin [Squidward comes out of the bathroom.]
‣ Dramatic Cue (d) - Ronald Hanmer ["Look what you've done to me!"]
‣ In the Crypt - Dave Hewson ["Enough! Listen up!"]
‣ Tales from the Swamp (c) - Ron Goodwin [The end of Squidward's speech]
• Gator - Steve Belfer [SpongeBob and Patrick take Squidward outside.]
‣ The Rake Hornpipe - Robert Alexander White [SpongeBob and Patrick feed Squidward.]
‣ Stack of Leis - Kapono Beamer [Night passes.]
‣ In the Crypt - Dave Hewson ["What's this? Napping on the job?"]
‣ The Achterhoek Dances - Jan Rap [SpongeBob and Patrick clean the back room.]
‣ In the Cradle (b) - Dick Stephen Walter [SpongeBob and Patrick find a comic book about the Flying Dutchman.]
‣ Tales from the Swamp (d) - Ron Goodwin ["Now he haunts the seven seas"]
• Seaweed 1 - Steve Belfer [SpongeBob and Patrick put Squidward to rest.]
‣ Funeral Music - Alfred Kluten [The mourners]
‣ Hawaiian Happiness - Jon Jelmer [Squidward confesses.]
‣ Vibe Link (b) - Richard Myhill ["Patrick, say that again."]
‣ Queen's Aloha Oe C - Kapono Beamer, Queen Lili'uokalani [The ending]
- This episode is available on the Halloween, Complete 1st Season, Karate Choppers, First 100 Episodes, Glumly Squidward, Nautical Nonsense and Sponge Buddies (Danish and Norwegian only), Holidays with SpongeBob 3-DVD Gift Set, The Ultimate SpongeBob Box Set, SpongeBob SquarePants Vol. 1, The Complete First Season, From the Beginning, Part 1, The SpongeBob SquarePants Collection, SpongeBob ScaryPants Collection, The SpongeBob SquarePants 8 Season DVD Collection, The First & Second Seasons, Movies & TV Collection, and The Best 200 Episodes Ever DVDs.
- This episode is also available on the Halloween VHS tape.
- "Squidward the Unfriendly Ghost" was ranked #95 during the Best Day Ever event from November 9–10, 2006.
- According to Sherm Cohen, this episode was originally going to be called "Squidward's House of Wax."
- This episode marks the debut of the Flying Dutchman, although he is only seen in pictures. His first physical appearance is in the episode "Scaredy Pants."
- This is one of seven episodes in which the 1986 Paramount logo is plastered with the 2002 Paramount logo. The others are "Help Wanted," "Squeaky Boots," "F.U.N.," "Employee of the Month," "Karate Choppers," and "Rock Bottom."
- When SpongeBob says, "G7," a C minor 7th chord is played on a ukulele.
- This is the first episode in which Squidward's name appears in the title.
- This is the first episode to use the track "Tales from the Swamp."
- The scene where SpongeBob says, "Okay, get in" and Patrick opens a coffin for Squidward has become a popular meme.
- In the French dub, this episode is called "Le Fantôme de Carlo," which translates to "The Ghost of Squidward."
- A scene from this episode was briefly featured in the 2019 film Pet Sematary, namely, the scene where SpongeBob and Patrick cling to each other and get scared. Coincidentally enough, Clancy Brown, who generally voices Mr. Krabs and has a cameo in this episode, had previously starred in Pet Sematary Two as Gus Gilbert, the sheriff of Ludlow who gets killed by his stepson's reanimated dog and then reanimated as a murderous zombie.
- This episode was paired up with different episodes in different marathons:
- The episode title is a reference of Casper the Friendly Ghost.
- When Patrick and SpongeBob are carrying Squidward around in servitude to him, they stumble upon an aquatic version of the painting Can-can. Squidward quips that it is "Too loose, Lautrec," a pun on the name of the artist, Henri de Toulouse-Lautrec, with an accompanying rim shot.
- Right before wax Squidward frowns again, a bit of his head randomly disappears for a second.
- When Squidward is on the royal bed, SpongeBob's house is missing.
- When SpongeBob and Patrick enter Squidward's house to retrieve the shell, they exit from the lift to Squidward's room. Additionally, Squidward's door has a different appearance. In other episodes, the appearance of his door is different from how it is depicted in this episode.
- When SpongeBob says, "Never mind," his eyelashes are missing.
- When Mr. Krabs says, "We all came when we were sure you were dead," his white undershirt is gone. It then returns again.
- When SpongeBob is running to the green coral, the shell is never seen lying near the coral.
- When Squidward shouts, "Hey," a small white bubble is seen for a split second on the left side of the screen.
- The rock SpongeBob throws does not appear to be broken after he and Patrick try to figure out what to do next.
- When Patrick is blown around the room, it shows that he lands vertically across the face, while the next still frame indicates he landed on his face horizontally.
- When the camera pans down to reveal that the Squidward sculpture has melted, SpongeBob and Patrick are standing next to each other. However, in the next shot, SpongeBob and Patrick are standing across from each other.
- When SpongeBob and Patrick send Squidward to the great beyond, Patrick's house is nonexistent.
- When the bubble carrying Squidward to the great beyond leaves the ocean, the water surrounding Bikini Atoll freezes for the last few frames.
- The Flying Dutchman's body in the display window is green as if he is a ghost, but he is not supposed to be a ghost yet.