Machine Ghost is known for being quite intelligent, as he knows how to control robots. He helps the Skylander frequently, telling them how to melt ice blocks, instructing them to hit Kaos' Iron Fist, etc. He is also very noble, as he seemingly sacrificed himself to protect the Skylander from a rock avalanche caused by Kaos. Unlike most ghosts, Machine Ghost is a sensitive soul and possesses his Arkeyan robot in an non-haunting way.
Ermit tried to build a giant robot for years, but was unsuccessful. He eventually won a blue Arkeyan War Machine in a Skystones game with Freebot 002. When he thought the robot was haunted because of Machine Ghost, Ermit left the Arkeyan War Machine in the cold wastelands of Glacier Gully. There, Machine Ghost was separated from his body, and the Ice Ogres thought his robot form was their 'Great Evil Ice Master' and began praising it.
After years of loneliness, the Machine Ghost was encountered by the Skylander, who came to Glacier Gully to find Ermit's robot that was needed to open the Secret Vault of Secrets. They helped Machine Ghost return to his robot body after navigating and infiltrating Snowclops territory. Grateful for their help, the Machine Ghost agreed to assist the Skylander get to the Secret Vault of Secrets. With Machine Ghost's help, they were able to reach the vault, but Kaos and the Arkeyan Conquertron appeared and broke off a portion of the mountain, sending an avalanche of rocks towards the Skylander.
The Machine Ghost sacrificed himself by quickly shielding the Skylander from the falling rocks using his robot body, sustaining heavy damage in the process. Before he was put out of commission, Machine Ghost managed to overhear where Kaos was planning on going next after unintentionally destroying the Map to the Lost City of Arkus. He weakly informed the Skylander of this information before succumbing to his injuries. Sometime afterwards, Ermit repaired Machine Ghost, and they both helped the Skylander in their battle against Kaos in his Arkeyan robot form. After the battle, Ermit mentioned taking Machine Ghost along to take on the clouds, believing them to be a greater threat.
- He shares a similar character model to the ghosts who reside in Darklight Crypt and in 3DS games after it.