In 1760, a young Barnabas Collins and his wealthy family immigrated from Liverpool to Maine to expand their family’s empire in the fishing industry, where they established the town of Collinsport and constructed the Collinwood Mansion. Sixteen years later, Barnabas is engaged to Josette. He had been having an affair with family servant Angelique, but he refuses any further advances from Angelique and breaks off their relationship. Enraged, Angelique, secretly a witch, murders his parents using magic and curses Barnabas. She then casts a spell on Josette, making her jump to her death from the cliff called Widows' Hill. A distraught Barnabas attempts to fall to his death but fails, discovering that Angelique's curse has transformed him into a vampire. She rallies the town against him, and Barnabas is buried alive in a hidden tomb.
In 1972, Maggie Evans, under the alias Victoria Winters, is hired as governess for the Collins family, now consisting of matriarch Elizabeth, her teenage daughter Carolyn, Elizabeth's younger brother Roger, and his young son David. Meanwhile, a construction crew unwittingly frees Barnabas from his tomb and he drinks their blood to restore himself. At Collinwood, Barnabas hypnotizes the caretaker, Willie, to become his familiar, and reveals to Elizabeth that the family curse is true.
Barnabas asks to rejoin the family and shows her the manor's secret passages and hidden treasure. He is taken by Victoria’s strong resemblance to Josette. Meanwhile, an older Angelique has displaced the Collins family fishing business by starting her own company, Angel Bay Seafood. Once discovering that Barnabas has escaped, she goes to Collinwood to confront him.
While adjusting to modern life and falling for Victoria, Barnabas uses his powers and the family treasure to restore his family's finances. Dr. Hoffman learns of his true nature while she is under hypnosis and offers to try to turn him mortal by removing his corrupted blood and giving him transfusions of human blood. Angelique arranges another meeting with Barnabas. She begs him to love her back, but after having supernatural intercourse with her, he refuses.
She vows to destroy his family and Victoria. Barnabas hosts a "happening" at Collinwood for the entire town. He talks with Victoria, who reveals she has been seeing Josette's ghost her whole life. When her parents assumed she was delusional, they committed her to an asylum for it. However, she eventually escaped, and Josette directed her to Collinwood.
Determined to be human again, Barnabas goes to Dr. Hoffman's office, where he discovers that she deceived him to turn herself into a vampire and avoid death from old age. Barnabas kills her, and he and Willie dump her body at sea. After catching Roger attempting to break into the secret passage that leads to the hidden fortune, Barnabas confronts him, offering him a choice: become the loving father David deserves or leave Collinwood with financial gain.
Roger chooses the latter. Heartbroken, David is nearly struck by a falling disco ball, but Barnabas saves him before catching fire in the daylight, revealing himself as a vampire to the whole family and Victoria. Believing they will never accept him, Barnabas meets with Angelique, who goads him into confessing to his murders and demands he join her as her paramour.
He again refuses, so she again traps him in a coffin. Angelique destroys the Collins' cannery and, with a recording of Barnabas' confession, rallies the town to storm Collinwood Manor. David frees Barnabas, who confronts Angelique at Collinwood. They battle, and the townspeople learn that she is a witch.
Carolyn, who is revealed to be a werewolf, joins the fight, and Angelique uses her enchantments to subdue them, damage the house and start fires. Angelique admits she was responsible for the werewolf that bit Carolyn as an infant and for the death of David's mother. Her ghost appears and incapacitates the witch, and the family escapes the burning manor.
Angelique offers Barnabas her heart, but he refuses; she then crumbles into dust.
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