A small film crew consisting of the members Kazuo (Shingo Yamashiro), his daughter Emi (Nokko), producer Akiko (Nobuko Miyamoto), photographer Tagushi (Ichiro Furutachi) and art restorer Asuka (Fukumi Kuroda) visits the old and abandoned mansion of the famous artist Ichirō Mamiya, who left several precious frescos inside his house. The team wants to restore and publish the paintings and film a documentary about Yamamura and his arts. After entering the mansion, several poltergeist activities occur and Asuka becomes possessed by the infuriated ghost of Mamiya, the wife of Ichirō. The team discovers the burial of a toddler, the son of Mamiya, who fell into the incinerator of the house one day and burnt alive. Since then, Mamiya's ghost haunts the mansion, killing any trespassers. In the end, only Kazuo, Akiko and Emi survive after bringing Mamyia and her beloved son together and so giving her peace.
Along with the film release, a role-playing video game with the same title produced by Juzo Itami and published by Capcom was also released in 1989. It is still unclear whether the movie was based on the video game or vice versa due to the missing information about exact date the movie was released. However, according to the game's director, Tokuro Fujiwara, he was able to view the film and use what he wanted to as part of the game, and that he "carefully considered how to go about bringing elements from the movie to the game screen".
Tom Mes of Midnight Eye noted that the script echoed Robert Wise's The Haunting. He said, "Despite its unsurprising plotting, Sweet Home is action-packed, thrill-packed and effects-packed, resulting in a more than entertaining haunted house ride."