Panty and Stocking are angels who were kicked out of heaven due to their bad behavior. They are sent to Daten City (a pun on the Japanese word, "datenshi" (堕天使 lit. Fallen Angel?) ), a place located somewhere between heaven and hell, where strange monsters called "Ghosts" start terrorizing the place. Under the watchful eye of Reverend Garterbelt, it's up to Panty and Stocking to destroy these Ghosts, and by doing so they receive Heaven Coins which will allow them back into heaven.