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Nilalang is about an NBI agent who teams up with the heiress to a transnational organized crime syndicate in Japan to put a stop to the centuries-old curse that might be responsible for the spate of serial killings happening in Manila.

Daniel and Cynthia, a young couple with a child on the way, experience some hard times in Manila. They head back to Baguio, where Daniel is originally from, to start over again. Through the kindness of Alex, Daniel's well-to-do childhood friend, they get to stay in a large house, rent-free; and he gets a job offer as well. The worst seems to be over for them. Or so they think. Funny things start to happen in their nice house. It starts out as movements caught on the periphery, whispered sounds, unexplained feelings. It's seems that the house in haunted. The ghost is a child. A little girl. The spirit manifests in the house and follows the occupants around. Daniel, whose past is a mystery to his wife, has been running away from something or someone in Baguio. He's starting to realize that what he has been running away from is starting to haunt him. As the story progresses, the subtle manifestations become full-blown apparitions. The film culminates in a series of flashbacks experience by Daniel - celebrating his recent graduation, partying and getting drunk in the process, driving under the influence, causing a deadly car accident with a mother and child, the mother seemingly dying, the little girl with faint signs of life, Daniel taking her to the hospital, the child seemingly dying in his arms, the moral dilemma Daniel goes through, his "Faustus" moment, his decision to bury the child in a remote, shallow grave, the child being buried alive! It is revealed that the little girl who Daniel buried alive is the ghost haunting them and the house that they're staying in was her family's!