Haunted Hoosier Legends Part Five: The Blue Lady


Kayla Moriarty, Staff Writer

About twenty minutes from the tourist town of Nashville, Indiana, is an inn with a history. Reports of a “blue lady” who roams the halls has been a popular sight among visitors. 

Story, Indiana was a small town that only featured a couple of essential businesses. A small general store was the most visited place in town. With their business taking off, the owners cleverly marketed an idea of a bed and breakfast upstairs. That was the creation of the Story Inn.

Unfortunately, the Great Depression happened and many of the town’s locals moved out searching for more favorable jobs. The owners of the inn, Cynthia and Benjamin, had no choice but to sell their business to someone else. Now, the inn is still a fully functional bed and breakfast with many accommodations. The Inn has eighteen rooms, with no two alike. They do not have any modern technology to preserve the history. One room in particular is called the Blue Lady room, where she is said to be the most active.  What would explain the presence of this blue lady everyone sees? Well, some believe it is Mrs. Jane Story, the wife of the town’s founder.

According to the legend, Jane loved cherry tobacco, and many guests report the strange smell of it wafting through the room. The figure seen also has piercing blue eyes, rumored to be the same color as Jane’s. Multiple paranormal investigative teams have taken EMF recorders, spirit boxes, and many more tools to the blue lady room. They report doors opening and closing by themselves, objects mysteriously moving, and orbs floating around the room.

I visited the Story Inn towards dusk, but unfortunately, I didn’t get to stay. We didn’t plan on stopping because it was a last minute idea, so we didn’t book a room. I did get to walk around, though, and I can tell you personally that I don’t think the rumor of paranormal activity is far from the truth. However, I was more focused on the amazing historical preservation the owners have accomplished, even keeping the land treaty for Story. This spring, I plan to return to the inn and update my opinion.




Photo by Kayla Moriarty