Very creepy in an adorable way...if that makes sense. I lov every aspect of it! It kinda reminds me of Poltergeist in a weird way, you know, in the (I think) the second one where the Grandmother dies and stops the Creeper-Dude-In The-(agian, my brain is hazy)-Bowler-Hat from taking Caroline.
The background looks painted with aquarelle, and the ghost looks so much like a contemptuous grandmother from a Miyazaki film that it gives me a sense of deja vu. The bird gives the picture a surreal feel, and provides a very nice touch. I love it.
Nice 'n loose! It's really cool how by you being in the lime light and all, we can track how your style has evolved (is super effective!) over the years, from the first PA comics to your paintings and this nice piece here.
Love the use of colors. Your characters are very distinct, particularly in the expressions, it really brings them to life. Also digging the distinct focus on the pair in contrast to the sort of fogginess of the setting around them.
This is a good example of what I was talking about in my wallpost. The sense of water is great (water in the medium- which creates a wonderful sense of light). Have you thought about printing this onto watercolor paper?