The Ken blade brings disaster. Akitoki and Inuyasha travel the shrine of the wind and thunder gods to make an offering to seal away the blade's demon powers. But Hoshiyomi's demon ninjas attack in order to steal the blade.

Akitoki, Hoji's ancestor is on a journey to offer the Hojo family heirloom, the Kenkon Naginata, a demon sword that brings disaster. Inuyasha and the gang travel accompany him. People who are after the Kenkon Naginata appear.

Many years ago, Inuyasha's father, the Great Dog Demon, wielded the Three Swords of the Fang. Upon his death he bequeathed a sword to each of his sons, Inuyasha and his rival brother, Sesshomaru. He locked the third sword, the wrath-filled Sounga, away forever. Now, 700 years later, the Sounga's tremendous power has been awakened and the two brothers must set aside their differences and join forces in an unlikely and uneasy alliance to battle a force that spells doom for all mankind. 

A treasure stealing invisible demon appears. An old lady who failed to defeat him asks Inuyasha and the gang for help. Inuyasha are in charge of guarding the second biggest mansion in town.

Priest Mushin, the person who raised Miroku, is going to die. Miroku and the others are shocked. They ask to Mushin's what he wants so that they can give him one last gift. He says that he will have no regrets if he gets to drink "Mist Sage" a wonderful sake that is brewed by the Sake Sage.

Sara asks Sesshomaru to destroy her along with the spirit. Sesshomaru complies, and uses the Tessaiga to destroy Sara along with the spirit. Sara accepts her fate. Inuyasha and Kagome watch her final moments.

Sara, a mysterious woman, appears before Sara. Sara was once saved by Sesshomaru. She was reincarnated just as she had died from an illness. She has stolen Inuyasha's Tessaiga, and turned Miroku and Sango into glass statues.

At a village where only women live, a demon that was sealed away in a hanging scroll at Kanondo is revived. The demon merges with his main body, which had sunk to the bottom of the river, and shows his true form, a salamander demon.

Inuyasha and the gang meet Shinosuke, who is looking for his fiancée. They are led to a village of only women, and are separated by sex into their rooms. Kagome is left together with Sango. She asks Sango about her relationship with Miroku.

Five demon fox brothers believe Shippo to be a cover. They become his disciples to learn his special technique, the Wind Scar. Shippo is unable to teach it to them, but he tries to show off and fool them. He tricks Mizuki, a girl that he had become friends with recently, and makes her angry.

A demon named Chokyukai is revived, and begins to steal girls. A young man named Kisuke comes to Kaede for help. Inuyasha go to defeat the demon. When they arrive at Kisuke's village, Chokyukai appears leading a water imp and a monkey.

On the day of the cultural festival, the dried demons that Kagome brought from feudal Japan are revived. They devour the food that Yuka and the others made. Kagome covers up the emergency with food from the convenience store.

In feudal Japan, Naraku has sent a demon called Mimisenri to look for the Sacred Jewel shards. Meanwhile, Kagome returns to the present day, and finds that the school is in the middle of preparing for the cultural festival. Kagome ends up helping out with the festival.

Naraku's baby carries Kagome to an abandoned temple. He orders Kagura to place a corrupt Sacred Jewel shard in her. But the shard is deflected and Kagome regains consciousness. The baby tries to regain control of her soul once more by telling her to curse Inuyasha's bond with Kikyo.

Inuyasha is pulled away from his friends when he is tricked by fake information that Kikyo is still alive. Meanwhile, Kagome and the others are at a certain castle town. They are reproached and captured. Kagome is called to the castle, by herself.

Mt. Hakurei is destroyed. Koga falls to the bottom of it. Inuyasha saves him. As he goes to meet up with Kagome and the others, who are trying to escape as quickly as possible, he sees an illusion of Kikyo.

Naraku has gained a new body and has been reborn. Inuyasha tries to defeat him with a Wind Scar, but catches the force of his attack and flings it at Kagome, Miroku and the others. Meanwhile, Kikyo sees Kagura escaping from Mt. Hakurei.

Miroku and Sango see a mysterious lump of flesh in the depths of Mt. Hakurei.Sesshomaru and Kikyo sens the strange happening from different locations, and make heir way to Mt. Hakurei. Bankotsu is fighting one on one with Inuyasha.

Mt. Hakurei's barrier disappears. Inuyasha is worried about Kagome. Kagome heads to Mt. Hakurei with Koga and the others. Meanwhile, Kikyo and Sesshomaru have sensed that something strange has happened from different locations. As Mt. Hakurei rumbles, Inuyasha and Bankotsu begin to fight within the mountain.

Inuyasha regains his demon powers. He defeats Jakotsu, and hurries to Mt. Hakurei. Renkotsu has rebellious feelings towards Bankotsu. He kills Jakotsu while he's injured and takes his shard. Meanwhile, Kikyo comes face to face with the mummy of Saint Hakushin.

Miroku and Sango come face to face with the Saint Hakushin's mummy on Mt. Hakurei. The saint tells them his reason for helping Naraku. Miroku tells him that he doesn't blame him, but that he cannot allow the barrier to protect Naraku.

The evil within Mt. Hakurei is Naraku's demons and Kagura. Miroku risks his life to save Sango, by opening his Wind Tunnerl and sucking in the demons along with the poisonous bugs. But he uses up his power and collapses. Inuyasha is concerned about Miroku and Sango.

Ginkotsu has died, and Renkotsu uses his shard without permission. In doing so, he has betrayed Bankotsu. He cannot go back anymore. He lusts for even more power and attacks Koga so that he can take the Sacred Jewel shards that he owns.

Suikotsu cannot kill Chiyo and the others. Jakotsu stops him. He senses an attack from Sesshomaru. Suikotsu and Jakotsu move within the holy realm, and wait for Sesshomaru. Sesshomaru's movements are slow because of the holy ground, but he skewers Suikotsu with his Tokijin, and slashes Jakotsu's chest with his claws.

Mt. Hakurei gets stronger, and Kikyo is prevented from going into its hold ground. Kikyo leaves Chiyo's village, but she goes after Bankotsu to see where fellow deceased, the Band of Seven, are doing. Jakotsu and Suikotsu attack Sesshomaru, and kidnap Rin

Mt. Hakurei's holy barrier prevents demons from entering it. Saint Hakushin helped Naraku, and placed the barrier. Koga tries to find a way to beak through, but fails. Renkotsu and Ginkotsu show up to get Koga's Sacred Jewel shards.

Bankotsu gets Kagome and the others involved in his battle with Inuyasha. Inuyasha is angered that his friends are getting hurt, and corners Bankotsu. But Saint Hakushin's vajra protects Bankotsu and turns the Tessaiga back into a rusty sword.

There is a holy island in a lake surrounded by mist. Saint Hakushin, who become a living Buddha a hundred years ago, is venerated there. But something strange happens. The father of a boy named Shintaro goes to investigate, but he doesn't come back.

The battle between Bankotsu and Inuyasha begins. Meanwhile, Sesshomatu comes to Mt. Hakurei. He is blocked by the holy barrier, and turns back. But there are demons within the holy ground.