scary story; horror story
A story intended to frighten or unsettle, often involving supernatural elements or suspense.
He told the children a scary story at night.
怪談 specifically refers to traditional Japanese ghost stories, while 恐怖物語 is a broader term for any scary or horror story.
ホラー is a loanword often used for the horror genre in media, whereas 恐怖物語 is a more descriptive Japanese compound.
Compound of 恐怖 (きょうふ, 'fear') and 物語 (ものがたり, 'story').