A group of people at a graveyard mourn the passing of Emily Deetz. Emily's daughter, Lydia, reflects on the death of her mother and her own inability to be noticed by her father, Charles ("Prologue: Invisible"). A millennia-old demon named Beetlejuice appears and mocks the idea of living life to the fullest, as it will all be worthless once death comes ("The Whole 'Being Dead' Thing"). Beetlejuice then addresses the audience directly, explaining that, as a demon, he is invisible to all living beings unless he gets a living person to say his name three times, and reveals that he has come up with a plan to accomplish this.

Beetlejuice then introduces Adam and Barbara Maitland, a normal married couple who desperately want to start a family, who are not emotionally ready and project their insecurities onto their hobbies. As the Maitlands reason to themselves why they are not ready for a child, they fall to their deaths through unstable floorboards in their home ("Ready, Set, Not Yet").[a] The Handbook for the Recently Deceased falls from the sky, but Beetlejuice burns it, wanting the newly deceased Maitlands to haunt their house and get a living person to say his name three times. When the Maitlands awaken from their fall and realize that they are dead, Beetlejuice reveals himself to the couple and offers to help them adjust to the Afterlife ("The Whole 'Being Dead' Thing, Pt. 2"). He reveals to the Maitlands that a new family, the Deetzes, have bought their house and that in order to remain alone, they will have to scare them away, so the Maitlands accept his help ("The Whole 'Being Dead' Thing, Pt. 3").