The Tale of Aypi follows the fate of a group of Turkmen fishermen dwelling on the coast of the Caspian Sea. The fear of losing their ancestral home looms over the entire village. This injustice is being made to look like a voluntary initiative on the part of the fishermen themselves, whilst the ruling powers cynically attempt to confiscate their land. One brave fisherman from the village rises up to confront them and fights for his native shore, as a response to an act of cruelty inflicted on a defenceless young woman centuries ago. This unjustly executed soul returns as a ghost during this troubled time to exact a terrible revenge on the men of the village.

The relationships among the characters mirror the eternal opposition between the forces of nature, with the intervention of mystical forces ratcheting up the tension.