Used when something or someone gives a person a positive emotional lift or encouragement. Just seeing her smile can raise someone's spirits.
Pro Tip 2/3
Not Literal
It's a figurative phrase, not about physically lifting spirits or ghosts. The news of his recovery certainly raised their spirits.
Pro Tip 3/3
Positive Context
Often used in situations that need optimism or when someone is trying to be encouraging. The teachers' encouraging words raised the students' spirits before the exam.