Neighbours say they have seen him strolling around his home like a scene from his "Thriller" video, and they have even heard his music and singing during the night, reports dailystar.co.uk.
Jackson died in his Beverly Hills house June 25, 2009, due to an overdose of Propofol.
"Everyone thinks that Michael's ghost walks around the house. It has freaked everyone out. When he was living there, Michael would regularly look through the curtains and see who was around," said a neighbour.
"People have heard his music coming from the house and even singing. It is so weird. The world knew that Michael was obsessed by the afterlife, from his songs like 'Thriller'. He believed in spirits - now his own has returned," added the neighbour.
Jackson lived at the mansion with his children Prince, now 15, Paris, 14, and Blanket, 10.
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