Derek, 67, was called into the Diary Room and informed that as part of his task he had to conduct a spiritual tour of the house in a bid to find ghosts.
The housemates were gathered into the bedroom before the lights cut out, plunging them into darkness and leaving them all terrified.
With the night cam turned on, it was clear that the celebrities were struggling to cope in the dark as Derek appeared to be summoning all manner of spirits.
At one point Derek appeared to be talking to someone in the darkness: “So be aware you hurt my friend, my colleague, good energy.”
Moments later it seemed like there was a ghost in the room as something appeared to rush past Karthik Nagesan as he jumped and looked visibly shaken.
“What the f**k is that all about?” he exclaimed as he hugged Derek for protection.
Two of the housemates appeared to be able to see something on the other side of the bedroom and pointed in horror at something off-camera.
Following the task, Derek was heard talking aloud to himself in the garden, saying: “I am who I am. Thank you, that means so much to me, I’m pleased with the outcome for them. Thank you. I’ll never forget this for the rest of my life, I’m going to share it with my family and my friends.
“This is one of a uniqueness for me as well. Thank you, a big shout out to you. I always loved you, you left a lovely, lovely mark on me. Thank you again.”
The scenes come as Sarah Harding and Jemma Lucy ended up in a blazing row in the garden, leading housemate Jordan Davies to walk away.
During the foul-mouthed rant, the Girls Aloud singer branded the Ex On the Beach favourite a “f**king c**t”.
Jemma stood up and started yelling and wildly gesturing at her, calling Sarah a “negative b***h”.
“Don’t speak to me,” Sarah told her as Jemma got up and started to walk away, shouting: “I don’t want to speak to you.”
Sarah would not let go as she told her: “Then why are you speaking to me?” as Jemma called her “a sl*t”.
“At least I don’t s**g on TV for a living,” the musician told her.
Celebrity Big Brother continues on Channel 5 tonight at 9pm.