When Kaede, was still a little girl, her older sister Kikyo was entrusted with a corrupt Sacred Jewel, which was removed from the body of the Mistress centipede. Kikyo's duty was to purify the jewel. She began to fight demons who were after the jewel.
The story of Kikyo and Kaede continues to unfold as Kikyo befriends Inuyasha. The Half-Demon Naraku is birthed through the desperation of Onigumo and his machinations lead to a tragic outcome for Kikyo and Inuyasha.
In order to defeat Naraku, Kagura looks for Sesshomaru. She appears before Rin and Jaken, but Sesshomaru is away. Kagura thinks that Naraku's weakness is the other half of Hakudoshi. Meanwhile, the other half of the baby has entered a human castle with Kanna's help.
Kagome and the others sense Kikyo's presence from the purifying arrow. Meanwhile, Abihime attacks the village. The saint returns and wipes out the demon birds with her purifying arrows. Abihime retreats. Inuyasha and the others arrive, but it is after the saint has left to destroy the birds' nest.
The other half of Hakudoshi, Naraku's baby, is being hidden in a human castle by Kanna. Kohaku appears in the castle town. Meanwhile, Kagome follows a shinidamachu to a waterfall basin and finds Kikyo. Kikyo has succumbed to Naraku's miasma.
Abihime and Tekkei sense that people keep interfering with them ever since they begame involved with Naraku. They become suspicious of a castle that Naraku's demons don't go near, and decide to invade it. Kohaku is in the castle, and he has been ordered to protect the other half of Hakudoshi.
Abihime dislikes Naraku, and has attacked a castle belonging to humans inolved with Naraku. Kanna and Kohaku are there and have secretly been protecting Hakudoshi's other half. Naraku senses that the castle is going to fall, and orders Kohaku to kill those arround him and steal the baby.
Kikyo is reunited with Inuyasha. She advises him not to take Kagome with him, because Naraku will go to the other world and use Kagome's eyes to find the Sacred Jewel shard. Kikyo plans to go in her place. Inuyasha is worried that she has not completely healed, and stops her.
Naraku has cut off Tekkei's head. He heads to the place between this world and the next on the river of blood that comes gushing out. Inuyasha and the gang go after him, even though they know it's a trap. Sesshomaru arrives one moment too late.
Naraku hs stolen the final shard from Hosenki. Hosenki tells Inuyasha to kill him. Inuyasha's Tessaiga gains the demon powers of any powerful demon it cuts. Naraku begins to spew miasma from the cut that he received from Sesshomaru.
Hakudoshi releases a swarm of Zushi Rats into a field in order to lure Kikyo out. The rats devour villages. They don't die even if they're cut, and continue to multiply. Inuyasha and the gang encounter the rats. In order to exterminate the rats, they need to destroy the Zushi that is spewing the rats.