A "sighting"of a ghost known as the Grey Lady has terrified residents at Otago's Cumberland College, with staff calling in the university's chaplain to calm students at the hall of residence.
Students at the college, which accommodates more than 300 students, said many had slept with their lights on and shared rooms with other students since the sighting.
The ghost has been linked to the story of the "Grey Lady", which in one account involves a tragedy said to have happened at the now closed and nearby Queen Mary Maternity Hospital. The story goes that the woman haunted a nurse, who stayed at Cumberland College (in the days it was a nurses home), after she took her baby for being an unfit mother.
College resident Mareck Church said the ghost sighting happened on May 5, a Saturday night, with two female health science students - who had just came back to the college after studying - noticing a weird smell and a chill in the air as they walked down the hallway.
"One of the girls saw a black figure beside the fire hydrant, turned to the other girl to point it out and as they both turned round they felt a cold whoosh of air pass them," Mr Church said.