A demon injures Miroku's Wind Tunnel. Miroku visits the temple of Mushin, the man who raised him, for help treating the injury. Mushin is possessed by an Urn Grub and attacks Miroku. Furthermore, Miroku is paralyzed and is surrounded by many demons.
Sango's younger brother, Kohaku, who's supposed to be dead, is alive. Naraku reveals that Kohaku is living because of a sacred jewel shard that is planted in his back.
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.
Kirara has been weakened by Naraku's poison. Inuyasha and Kagome go looking for an antidotal herb. Jinenji, a demon who is protecting an herb field, is actually a half demon and is picked on by the villagers because of his weakness.
Inuyasha and Miroku come across a cave when they go looking for the source of a strong evil presence. The Fuko no Jutsu has been placed on the cave. Hundreds of demons will fight to the death and are absorbed by the victors.
Inuyasha and the gang go to save Kikyo. They are struck with Death by Illusion, a demon technique. Kagome is not affected by the technique. Kikyo takes away her Shikon Jewel shards and tries to kill her?
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's eye is closed by poison from Sesshomaru's claws. He relies on the smell of demon energies clashing to find the wind scar. He releases his sword's true power and forces Sesshomaru to withdraw. Totosai accepts Inuyasha as Tetsusaiga's owner.
Koga is the young leader of the demon wolf tribe, whose wolf minions were killed by Inuyasha. He places Shikon Jewel shards in his arms and legs, which he uses as weapons, making him an even match with Inuyasha. But it's Kagome who intrigues him?
Koga and the demon wolf tribe begin their attack on the Birds of Paradise. Kagome senses that the sacred jewel shard and tells Koga it's in the mouth of the brothers who lead the Birds of Paradise.
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.
Kagura, a wind-using demon, used rumors of Shikon Jewel shards to draw out demon wolf tribe members and kill them. She lures Inuyasha and the gang out and attacks them with the corpses of the demon wolf tribe members.
At the end of a desperate struggle, Koga corners Inuyasha, but he is extremely weakened by the poisonous shard in his arm. Kagura appears and controls the wind in the battlefield. Inuyasha stands up, but she tosses him about.
Miroku is reunited with Koharu, a girl he once made advances on. He leaves her in a certain village, where Kanna, the older sister of Kagura, appears.
Kanna's mirror fails to absorb Kagome's soul, probably because of its size, but it reflects Inuyasha's Wind Scar, the Tetsusaiga's special technique. Inuyasha is injured by the blast of wind blasted back at him. Then Naraku appears.
Kikyo gave the sacred jewel shards she had stolen from Kagome to Naraku. She appears before Inuyasha and tells him not to kill her until she is wiped out along with the Shikon Jewel and Naraku.
Totosai repairs the Tetsusaiga using one of Inuyasha's fangs. Meanwhile, Sessomaru takes the fangs of the deceased Goshinki to swordsmith Kaijinbo. He brings the fangs back to life with the Tenseiga.
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.
Because of the incident with Koga, Kagome has a fight with Inuyasha and goes back to the present day. Meanwhile, Naraku wants to get rid of Onigumo's feelings for Kikyo by sending a giant Shinidamachu to kill Kikyo.
Kagome returns to the present day. She senses that Inuyasha has chosen Kikyo and wonders if she can ever go back to the past, but she still has the Shikon Jewel shards.
Sango finds the bodies of her father and the other slayers at the ruins of Naraku's castle. Her brother Kohaku is nearby but can only remember that he escaped the castle.
Sango's brother Kohaku is being manipulated by Naraku and is after Kagome's life. Inuyasha and the gang have been separated from Kagome, but Kohaku doesn't take Kagome's life.
Just as Inuyasha and the gang overcome Naraku's trap involving Kohaku, Sesshomaru investigates the secrets of Inuyasha's transformation by visiting Bokusenno, a demon tree whose wood was used to make the sheaths for the Tetsusaiga and the Tenseiga.
Inuyasha transforms into a demon when his life is in danger. He quickly destorys Gatenmaru, who has become a giant moth. He attacks the escaping bandits with his claws, and he cannot hear Kagome trying to stop him.
Inuyasha visits Totosai's workplace by himself. The Tetsusaiga was broken by Goshinki, and Inuyasha's own fang was used to repair it. Inuyasha's fang isn't compatible with that of his great demon father, so the Tetsusaiga has become heavier.
Ryukotsusei knocks away the Tetsusaiga, and Inuyasha transforms into a demon. Totosai tells everyone to retreat because they are in danger, but Kagome decides to stay behind.