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A Japanese man claiming to be Mr Moto, of the International Police, is abducted and murdered soon after disembarking from a ship at Port Said in Egypt. The real Mr Moto is already in Port Said, investigating a conspiracy against the British and French governments. The dead man was his colleague, impersonating him to throw the conspirators off his scent. Mr Moto recognises one of the conspirators as a British Secret Service agent, and together they discover that the gang have mined the harbour in preparation for the arrival of the French fleet. Their aim is to throw the blame onto the British, which may start a second World War.

A village in Canada has an old legend about a phantom that years ago killed three villagers. Many residents are afraid that the monster has come back, because some of them have seen strange luminous shapes, and then some sheep were found with their throats slashed. Their worst fears seem to be confirmed when Lady Penrose is found killed in the same way. Meanwhile, Sherlock Holmes and Dr. Watson are in Quebec, attending a meeting of the Royal Canadian Occult Society, where they are involved in a sharp debate with Lord Penrose about his village’s legend. Not long after Lord Penrose receives word of his wife’s death, Holmes receives a letter that the dead woman had written before she died, begging for his help and protection. When Holmes goes to the village to investigate, he finds himself hunting a determined murderer who is also a master of disguise.