The episode begins with Kanna and Naraku having a discussion in Naraku's new castle. Naraku states that he wont let Kagura get away from him this time.
Then you see Kagura and Goryomaru, who is locked up, talking. Kagura wonders why Goryomaru is locked up, when Hakudoshi enters. Hakudoshi tells Kagura to join him and Goryomaru to betray Naraku and be free. Kagura recalls how Hakudoshi and the Infant were created. Then, Hakudoshi promises to return her heart, if she lets Goryomaru out and joins them to betray Naraku. Kagura wonders if she should. Hakudoshi states that before they kill Naraku, they need more sacred jewel shards to become stronger.
Then, In a small village Miroku was telling Shippo to transform into a double of Miroku, so the real Miroku could "get a little freedom". Sango figures it out and punches the real Miroku in the head.
Later, at Kagome's school, she is taking an important test in her extra lessons class, but she doesn't understand a thing. Inuyasha in and breaks Kagome's concentration, so naturally Kagome tells him to sit. Kagome fails her test, then faints. Inuyasha carries her home, then they return to the feudal era.
Then, Sesshomaru's energy crystal that leads to the Fuyoheki that the Infant posseses, is not changing. So, Sesshomaru, Rin on Ah-Un, and Jaken set off in another direction.
Kagome and InuYasha are heading into the forest of Inuyasha, when the Saimyosho and Hakudoshi appear. Miroku and Sango come running to help, but Hakudoshi steals Kagome's jewel shard and retreats. Kagome finds the aura of her stolen shard and they follow after Hakudoshi.
When Koga, Ginta, and Hakkaku continue on their journey, they come face to face with the huge demon Moryomaru.
Back in the village, Kohaku kills a possessed demon wolf, whose possesser then takes the body of a child. The child wounds his father, which reminds Kohaku of what he did to his father and friends, so he kills the possessing demon. Kagura appears and is trying to kill Kohaku to take his shikon shard.
Koga is shown fighting Moryomaru, but Moryomaru keeps reforming his body, when attacked. Moryomaru almost takes Koga's sacred jewel shards, but Kikyo's sacred arrow saved him. Although it took everything in her power because she is extremely weak. Moryomaru then retreats.
Kagura is after Kohaku now, and they run to a deserted area, where InuYasha and friends are entering now, while in pursuit of Hakudoshi. Kagura forces Kohaku to leave on one of her flying feathers, so nobody else can steal his shard. Hakudoshi appears. he learns of Kagura's betrayal, and they fight. Sango goes after Kohaku on Kirara. Goryomaru appears next and changes into Moryomaru, who absorbs Kagome's shard, and goes after Kohaku and Sango. Hakudoshi and InuYasha battle, but hakudoshi uses kagura as a shield, so Inuyasha wouldn't attack. Kagura reveals the location of Naraku's heart, and Hakudoshi's plan to strengthen Moryomaru to replace and kill Naraku. Hakudoshi thinks Naraku made a mistake to extract his human heart, and he thinks Kagura should worry about herself, not him. Naraku sees through Hakudoshi's plan and takes away Hakudoshi's shield and Saimyosho, so he is sucked into Miroku's wind tunnel. InuYasha realizes that they were used to kill Hakudoshi. Then, Kagura refusese to join InuYasha's group, despite Kagome's kind offer, and she runs away, far away from Naraku. Inuyasha promises that he will try to return her heart to her. Then InuYasha and friends set out to find Kohaku.
Moryomaru finds Kohaku and Sango arrives just in time to save Kohaku. Inuyasha and friends arrive, but Moryomaru disappears. Sango realizes that Kohaku got his memory back, and they share a heartfelt reuinion together. Kohaku tells Sango that he can't stay with her. Kagome tells Kohaku that nobody could ever replace him. Shippo realizes how lonely Sango has really been without Kohaku. Miroku says that nobody could replace him, either.
Kikyo is sitting, wihin her barrier, by a tree. She is very weak, and her Shikigami are worried. Two weak monks can even break through Kikyo's barrier, and the Shikigami wonder how they could get through. Kikyo wonders if she will survive long enough to kill Naraku.
This episode ends with a shot of the full moon, and Kanna saying "The longer I endure this world, the more beautiful the midnight moon". The ending shot is of a beautiful full moon in the midnight sky.