Muchalls castle had the perfect tunnel for smugglers. It was low, dark and damp and it lead to a cave on Muchalls beach The tunnel was used for storing spirits and wine. It was also used by anyone, who wanted to come and go without being seen.

There was a cave at the far end of the tunnel. Whenever it was high tide, the cave would flood. A young lady from the family at Muchalls Castle met her death there. She had been looking out for her lover, who was a smuggler, who would be arriving by boat.

As soon as she saw the boat from the tower, she ran down the tunnel into the cave, but the tide was high. She had fallen into the sea. Shortly after, her lover arrived, but it was too late. She had already drowned.

It has been said that she haunts the drawing room of the castle . Visitors have seen the green lady walking up and down, holding a brush, making herself beautiful for the rendezvous she never lived to keep.