Towa, Setsuna, and Moroha must save Rion, who has linked her fate with the Grim Butterfly, but Osamu Kirin stands in their way. Kirin declares that he and Rion should reign over the world in order to bring about true peace.

The feudal era is saved from the Degenerate Age. Inuyasha helps repay Moroha's remaining debt. Towa and Setsuna receive kimonos from their mother, Rin. Towa, Setsuna, and Moroha accept a demon-slaying request from a mysterious man.