Kagome is revealed to be the reincarnation of Kikyo, the priestess who once protected the Sacred Jewel. When the demon Yura of the Hair kidnaps her to obtain the jewel, Inuyasha rushes to her rescue. Although he tears the demon apart, it regenerates after having swallowed the jewel. When Kagome fires an arrow at the demon, the Sacred Jewel shatters into countless fragments, scattering them across the land.

While Kagome relaxes at home, Inuyasha comes through the well to retrieve her—unaware that a strand of Yura's demon hair clings to his shoulder. To stop her from attacking the modern world, Kagome returns to the past with Inuyasha. They face Yura in battle, but she traps them in flames from her demonic comb.