A story about ghosts or in which ghosts are introduced; hence, by extension, any story or statement to which no credence should be given.(noun)
The Century Dictionary (Public Domain)
Use "ghost-story" in a sentence
"This led to a marathon of ghost-story swapping over breakfast."
"His first book, a widely praised biography of the scholar and ghost-story writer M.R. James, was published by OUP in 1983."
"June 17 was an especially stormy night, and holed up in the Villa Diodati and fueled by rounds of ghost-story telling, the group decided to hold a competition to see who could write the scariest tale."