By Caroline Gammell
Cars have been lined up nose to tail every night for the past three weeks as news of the vision on the Mullaghmoyle Road, near Coalisland, has spread.
Armed with video recorders and digital cameras, ghost-hunters have queued up to get a glimpse of the "white lady", who is described as elderly with a sad expression.
Some have come as far as Belfast and Enniskillen in the hope of seeing the ghost.
Although some have dismissed the sighting as a trick of nature, the phenomenon has roused the interest of paranormal groups.
Raymond Bell, who owns a pub nearby in Brackaville, said his 17-year-old son Ryan had not believed in ghosts until he saw the "woman" several times.
"My son says he has seen the shadowy figure on numerous occasions and others have seen it too - it is the face of an elderly lady wearing a long white dress with a long white cape," he said.
"People are still coming in their droves to see her. They come when it gets dark at about 4.30pm and they stay until after 1am.
"It is only about 400 yards away and I have tried to get down there but there are just too many cars. It is all that anyone is talking about."
Sinn Féin Councillor Desmond Donnelly said there was a line of 60 cars queued up at one stage: "I wouldn't be one for ghosts, but you know how this type of thing spreads.
"If you ask me, it's more likely to be a reflection of the moon on the river that flows through the area. Although the talk is that what was seen was in the shape of a person."
Among those interested in the sightings is Warren Coates of the Northern Ireland Paranormal Research Association (NIPRA).
He said he planned to go to the area with a spirit medium: "It may sound far-fetched, but we will try to pick up names of people who may not be able to move on from this life.