Usagi, Kitsune, Chizu and Gen head to the cultural center, where they encounter a Yokai that lives inside neglected things and one that can change shape.
After Usagi and Chizu search for the last Urban Yokai in the Hidden Dojo, Usagi has a change of heart. Kagehito gets closer to finding his missing item.
Chikabuma sneaks away to warn Gen, Toshiko, Chizu and Kitsune about Kagehito's plan. After Usagi proves himself worthy, Karasu-Tengu agrees to train him.
The Ki-Stone gifts Chizu, Kitsune and Gen with weapons, but they don't know why. Usagi makes himself their sensei and trains them to use their new gear.
The gang tries out a new fighting game at the arcade. Usagi vows to stop battling Yokai but later gets attacked by O-Dokuro, a Yokai-possessed skeleton.
Chizu challenges Lady Fuwa for control of the Neko Ninja Crew. Usagi and Gen plan a party for Kitsune when they learn she's never celebrated a birthday,
After Kagehito warns of the coming Makkine invasion, the gang sets out to recruit the ninja and Mogura as allies. Lady Fuwa plots revenge against Chizu.