The Story Inn is described as haunted, most famously by the "Blue Lady," the spirit of Dr. George Story's wife. Visitors report seeing her in the rooms above the restaurant, detecting the scent of her favorite cherry tobacco, and finding blue items left behind. The spirit is believed to be harmless and is sometimes seen as a prankster. The Blue Lady: She is said to be the wife of Dr. George Story, who founded the town of Story, Indiana, in the 1850s. Guests and staff have reported various paranormal activities. She is often seen in the rooms located above the restaurant. The faint smell of cherry tobacco, her favorite scent, is sometimes reported. Blue objects or marks sometimes appear in her wake. Some accounts mention feeling the bottom edge of a skirt or seeing two bare feet. A female voice is sometimes heard calling out guests' names. Despite the paranormal activity, the spirits are generally considered happy and harmless. The Blue Lady, in particular, is thought to be a mischievous spirit rather than malevolent. Consistent reports of these phenomena have been recorded in guest books since 1980. The Garden Room: Visitors hoping to summon the Blue Lady can attempt to do so by placing the blue light in the "on" position in the Garden Room.