Hikari takes Rakka to the temple of the Haibane Renmei, where the Communicator approves her as a Haibane and gives her the notebook with which she can make purchases. Later, she helps Reki with the children at Old Home, and spends time with Kuu, the youngest of the older Haibane. They walk around town and visit the bakery where Hikari works.

Rakka realizes that the crow that died in the well represents someone who cared about her in her old life. The Toga find and rescue her from the well. Hearing a noise, she touches the wall. The Communicator leads her home and they talk about the bird, her wings, and a riddle he calls the Circle of Sin. Arriving home, Rakka becomes ill from having touched the wall.

A flashback shows the kindly Kuramori, who promised to stay with Reki forever. In the present, Reki goes to the Haibane Renmei to ask for help for the ailing Rakka, and is told that Rakka is no longer Sin-Bound. Rakka is given her own job within the wall around the city, and the Haibane from Abandoned Factory offer a tentatively friendly gesture.

Midori, from Abandoned Factory, gives more hints about Reki's past. The Communicator tells Rakka that while she had the birds to offer her forgiveness, Reki will not accept anyone's help, and has little time left. Rakka vows to try and help her. Visiting the library, she talks to Sumika about an old book. Resigned, Reki works on a secret painting.

The Haibane go into town to buy Bell Nuts, gifts of reconciliation for the Passing of the Year festival. Reki gives one to Hyouko, and he and Midori finally tell Rakka what happened. Rakka learns about the Renmei's sign language, and the Communicator gives her her true name. After the festival, the Haibane of Abandoned Factory send Reki a message.

Rakka discovers that Reki's entire studio is painted like her cocoon dream. She gives Reki a box from the Communicator, containing her true name, which fills Reki with despair. She throws Rakka out of the room, confronts a manifestation of herself, and relives her dream. Rakka realizes the truth about Reki's struggle and goes back to save her.