After a short recap of the previous video, the scene cuts to Edd and Tom in the kitchen, where Tom tells Edd about noises that were coming from the attic the previous night. Edd and Tom decide to investigate, only, to their surprise, to find out that Matt has apparently decided to tidy up his room, become less narcissistic, and is now using more sophisticated words. Edd jokes about Matt's sudden change in behavior, and Matt, who is possessed by a ghost, throws the duo out of the house. The ghost possessing Matt intends to take over the world, but Matt argues with the ghost about destroying monuments. The ghost leaves Matt's body after Matt insults him for throwing away his expired milk, and it possesses the house, not allowing the three to enter.
The group decide to ask help from Eduardo, only for him to mock them. As the trio explain their situation to Eduardo, the ghost pushes Eduardo's house extension over, revealing that Eduardo cheated and used cardboard to make the extension. He reluctantly decides to help the trio, saying that he'll go to a psychic.
At the Insta-Roof store, Son Rwanson, the manager, tells the trio that they need spirit insurance, which Edd didn't get beforehand, to protect their roof from supernatural forces. Rwanson adds that the Insta-Roof factory is built between a cemetery and a vet, making the roofs produced prone to being possessed or filled with rabid ferrets. The group leaves the building while Tom gets mauled by a rabid ferret. The two trios meet together, and Eduardo says that the psychic said that haunted houses (and Edd and his friends) are stupid, but Jon thought that the psychic called him, Eduardo, and Mark stupid, causing Eduardo to threaten to punch Jon in the face. Matt then suggests that the three go into the house and make a mess, something the ghost doesn't like.
Eduardo, Jon, and Mark set up deckchairs and watch the trio charge in and confront the ghost. The trio make a mess in their house, invoking the ghost and causing it to attack them. The ghost easily gains the upper hand and is about to kill Edd when Tom calls out for him. The ghost, upon hearing Edd's name, immediately stops attacking and realizes that he's supposed to go after Eduardo instead. The ghost possesses Eduardo's house, and Edd and his friends decide to watch. Eduardo vows to get his revenge before the ghost punches him off-screen.
- Edd: So, any luck with the psychic?
Eduardo: She said that haunted houses were stupid and that you guys were stupid.
Jon: I thought she said WE were stupid.
Eduardo: I'M GONNA PUNCH YOU IN THE FACE.
- Son Rwanson: What! You're crazy! How can you not like ice cream?! Ice cream is delicious!
Matt: Too cold! It hurts my teeth!
- Tom: Aaaand the last horse crosses the finishing line.
Edd: Can we still get in?
Tom: I don't see why not, we just open the door, and, OH, now I'm going backwards!
- Tom and Edd:ARE WE READY?!
Edd, Matt and Tom: YEEEAAAH!
- Matt: Hey, chums! How is everyone this fine morning?
Edd: Wow Matt, this place is actually clean.
Matt: Indeed. I thought I might as well tidy up a tad.
Tom: I'm surprised you found the time in your busy self-worship schedule.
Matt: Yes, well, I thought it was time to unclutter my life and become less vain and narcissistic.
Edd: I'm impressed. Being tidy, not caring about your looks...
Tom: Using words with more than two sylables.
Edd:(jokingly) Yeah who are you and what have you done with the real Matt?
- Matt: (After He, Edd and Tom entered the house) OH DEAR GOD!! It's exactly the same.
- This might've been Edd's hardest eddisode to make, because he started working on it in February, and it came out in July.
- One of the posters at Insta-Roof say that a fiddler is wanted and last seen on a roof. This references the movie "Fiddler on the Roof".
- Behind Tom in the Insta-roof building,there is an asdf poster that says, "A happy worker is a vicious psycho."
- After Hammer & Fail 2, Edd might be making more 2-part eddisodes, because, as he revealed on his Formspring account, it is interesting to him to see how many people get excited for the second part to come out.
- At the beginning of the video, Tom says "WHY DID YOU LEAVE?!?!?" down a red phone. This could possibly be a reference to Tord leaving Eddsworld in 2008. When the intro was shown in one of Edd's livestreams, he wasn't holding the red phone.
- But there is little chance of that being true, as Tom and Tord are rivals.
- Tomee Bear makes a cameo appearance on the sofa when Matt says "OH DEAR GOD IT'S exactly the same."
- Paul makes an appearance in a picture and as a background character.
- Matt's " Matt doll" was seen, referencing the all new "Matt Doll" episode on Newgrounds.
- At the beginning of the episode, Edd says "So, sleep well last night?", to which Tom replies "No." This is a reference to the first Hammer and Fail where Tom asks the same thing.
- The car that Tom crashes into looked a lot like Tord's car, even though he DID have the keys to it.
- There is a no-ghosts sign on the door of possesed Matt's bedroom,This might be a reference to Ghost-Busters.
- On Matt's calendar on the 10th of Septembuary it says "moi" instead of "me".
- In Matt's bin there is a magazine that says "16 Tips on How Ugly You Are".
- Tom has white eyes when he is yelling at 5:55.
- The mouth design is different from previous episodes to this.
- When Edd and Tom enter Matt's clean room in the beginning, there is a skeleton head that looks very similar to Zanta's on a drawer on the right side.
- Sunglasses in Matt's room look like they are from his channel, "wallycube".
- At Insta-Roof, a poster outside says "THE ROOF THE ROOF THE ROOF IS ON FIRE" .This is an actual song, "The Roof is on Fire" by Bloodhound Gang.
- In one of Edd Gould's LiveStreams for Hammer and Fail Pt 2 Tom said "Holy Snowflake On Jabba the Hut!" but it was never put in the final version.
- The ghosts glasses say "spook-tcles".
- On the subtitles when Jon is speaking once it says "Tom" instead of "Jon".
- There's a picture of Hellucard (the 'ey hEdd guy) in Insta-Roof next to Matt that says "Do NOT Accept Cheaques from this man".
- When Matt reads the Insta-Roof ad the ad under it says "HAVE YOU SEEN MY SAUSAGE?!"
- In the intro, Tom says, "I did not want to do this." This references Part 1, where Edd sings, "This is the opening tune" during the intro.
- In Matt's room, there was a cheeseburger on the shelf.
- When they were going to charge in their house, Edd's armour has a text saying "RAAAAAR"
- Before Edd, Tom and Matt charge into their house, Mark and Eduardo switch voices.
- When Matt says "I thought I might as well, tidy up a tad?" the background is blurred. However, on Youtube, it is not.
- This was Edd's last full eddisode before he died on March 25th, 2012. Space Face, the next animation was half - way done when Edd died. However Tom has promised the 2nd half of the episode on the Eddsworld Facebook page.
- Like in Part 1,There is a Mr. Potato Head on one of the shelves in the roof.
- The look on Eduardo's face when he says "I'm gonna punch you in the face" has became an internet meme.
- This episode was delayed because Edd Gould had leukiemia.
- When Edd says, "Damn it, past Edd!" it is a reference to WTFuture.
- A picture of Paul and Cancer can be seen on the wall behind Edd and Tom as they come up the stairs in the beginning of Part 2.
- One of the shelves contains a pyramid with an eye on it. A possible reference to the Illuminati, a barvarian organiztion that has existed in the 18th century, witch some conspiracy theorists claim to have survived it's so aclaimed "death" and is right now incharge of the United States goverment.
- The worker at Insta-Roof's name is Son Rwanson, which a reference to the Parks & Recreation character, Ron Swanson.
- Main article: Gallery:Hammer & Fail (Part 2, Rooftop Rumble)