Inuyasha and the gang meet Taromaru, the son of a village leader. They go to the Temple of the Water God, where children are being sacrificed. The Water God has a sacred treasure and toys around with the group.
Sango steals the Tetsusaiga and is led to Naraku's castle. Sango tries to use the opportunity to kill Naraku, but she is seriously injured by an attack from Kohaku. Inuyasha and the gang catch up to her, but they are in danger from Naraku's miasma.
The Tenseiga and the Tetsusaiga, two great swords that were forged by swordsmith Totosai, have been left to Sesshomaru and Inuyasha by their father. Sesshomaru wants a sword to fight with and is unsatisfied with the Tenseiga, a healing sword.
Inuyasha and Sesshomaru continue fighting for the Tetsusaiga. After the fight, while Sesshomaru is recovering, a little orphan girl, Rin, tries to bring him food. When her village is attacked by wolf demons, Sesshomaru returns the favor and helps Rin. Meanwhile, Kagome senses a jewel shard. Inuyasha and gang follow her lead to the massacred village, where they are quickly surrounded by wolves and Koga.
Inuyasha and the group must battle the Birds of Paradise, before they can reach the wolf den. Meanwhile, back at the den, Koga expresses his true feelings for Kagome. When the final battle with the Birds ensues, will Inuyasha's jealousy cost Koga his life?
Kagome is angry that Inuyasha is suspicious of her relationship with Koga and returns to the present day. She goes back to school for the first time in a while, where she has to deal with the advances of yet another suitor.
While Inuyasha's gang follows a demon bear with a jewel shard, Koga meets with some demons from the northern pack who tell him about their plan to storm a castle where a man has many jewel shards. When the chase leads Inuyasha and his comrades to the castle, they meet up with Koga, who is furious at the slaughter of the wolf demons.
Kaijinbo the swordsmith, manipulated by the sword Tokijin, charges at Inuyasha. In the end, he is wiped out by the force of the Tetsusaiga. All that is left is the Tokijin, which is untouchable because of the evil energy it emits.
Naraku's new minions, Juromaru and Kageromaru, attack Inuyasha and the gang. Koga comes to save Kagome from danger. He fights the two demons as he bickers with Inuyasha, but he struggles against Kageromaru, who digs underground.
Naraku's poisonous bugs appear. Sesshomaru goes after them. Meanwhile, Jaken is stung by a poisonous bug and is dying. Rin is left with him. She tries to save him. She heads to Jinenji's field to get a fruit of the Sennenso. But Jinenji, a half-demon, has become human...
Kirara disappears. Sango is worried. Shippo deduces Kirara's reasons for disappearing. He blames Inuyasha and the others, and urges them to be repentant. At that moment, a thundering sound comes from the forest. Inuyasha and the others rush on over. They help a man being chased by demons get away, and find the scarf that Kagome gave Kirara amongst the scattered bones!
Kagome is lured to a cave by a voice calling for help. Kagome enters the cave and meets Kikyo. Kikyo doesn't haven enough souls of the dead and has become weakened. Kagome tries to escape from the cave, but Kikyo tells her that it's useless. Thye are actually within the demon called the Priestess Sealer...
Snow is falling out of season. Miroku is abducted by Koyuki, a mysterious woman. Kagome and the others hear from a hunter and his wife about a snow demon. When they go looking for him, they find Sango, who had gotten lost. Meanwhile, Miroku is being led by Koyuki. He is greeted by many children and babies. Koyuki tells Miroku that they are his children...
The Band of Seven, a group of ghosts, have been brought back to life. A cavalry sent to defeat them, is decimated by the Band of Seven's second strongest, Jakotsu. Inuyasha and Miroku catch up to Jakotsu, who immediately takes a liking to them and casts amorous glances at them...
The match between Jakotsu and Inuyasha is stopped when Mukotsu interferes. Mukotsu kidnaps Kagome to make her his bride. Miroku and Sango try to save Kagome, but Mukotsu's poison makes them unable to move. Sesshomaru, who is looking for Naraku, appears and defeats Mukotsu for being in his way...
Kagome, Miroku, and Sango have been weakened by Mukotsu's poison. Inuyasha is tries to draw attacks away from them as he fights Ginkotsu of the Band of Seven. Shippo takes Kagome and the others away, and arrives at a temple, but Renkotsu of the Band of Seven has placed a trap there...
At the temple, Inuyasha checks to see of Kagome and the others are safe. He ends up trusting Renkotsu. Ginkotsu bombards him. Inuyasha faces him, but as he does, Renkotsu steals the Sacred Jewel shards from Kagome and sets the temple on fire...
Kagome, Miroku, and Sango have stopped breathing. Inuyasha searches for the Band of Seven to avenge them. He meets Sesshomaru, and becomes sure that it's an illusion. But Sesshomaru has come after Kohaku, and is nearby...
Suikotsu's Band of Seven personality awakens and fights Inuyasha. When the children call out to him to turn back, he holds his head in pain. Renkotsu decides to retreat from the village. Meanwhile, Kagome realizes that the Shinidamachu cannot get near the holy barrier...
There is a barrier around Mt. Hakurei that purifies demons or anything evil. Inuyasha and the others think that Naraku cannot be hiding in Mt. Hakurei, and go looking for a different clue. Meanwhile, the surviving Band of Seven members are reunited with their leader, Bankotsu...
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. I
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.
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.
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
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.
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.
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.
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.
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.
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.
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.
While Inuyasha, Kagome, Songo, Miroku, Shippo and Kirara are trapped inside of Mt. Hakurei, they come to the realization that they are actually trapped inside of Naraku. As they watch Naraku create his new, more powerful body, they attempt to save themselves and Koga, who was engulfed into the walls of Naraku's body.
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.
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.
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.
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.
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.
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.
Five demon fox brothers believe Shippo to be a hero. 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.
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.
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.
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.
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.