The most prominent ghost story at Henderson State University involves the haunting of Caroway Hall by a student named Gracie. According to campus lore, a student named Gracie lived in Caroway Hall during the 1950s. Suffering from a broken heart or other personal tragedy, she reportedly took her own life by hanging herself out a window over the building's front door. Since her death, Gracie's spirit is said to haunt the dormitory. Reports include hearing the sound of footsteps at night and occasionally seeing Gracie's apparition walking the halls. A chilling account states that one resident was found staring at a wall, telling people she was "talking to Gracie".