Towards the end of the film, Nebbercracker, realizing that Constance has attacked people while he was at the hospital, resolves to put her out of her misery, and attempts to use one of his dynamite to blow her up, to no avail. After being saved from certain death by Chowder, Nebbercracker asks the younger DJ to do it for him. In the ensuing battle, DJ and Jenny work together to throw the dynamite down the house's chimney and into the furnace, the house's heart, blowing it and the house to smithereens.
After Chowder duels with the house using the excavator in the game's final chapter, DJ swings on the crane with the dynamite in an attempt to throw it down the chimney. This is tricky, because the player has to press a specific button (depending on the version of the game) at the right time in order to get it down the chimney.
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The dynamite serves its purpose by blowing Nebbercracker's haunted house to bits.
