Watanuki's life changes completely when he meets Yūko for the first time. Watanuki is given a job at Yūko's shop, paying off his debt. Mokona, Maru and Moro all make their first appearance in this episode.

When a Zashiki-warashi accidentally steals Doumeki's soul, Watanuki has to go after her to get it back, aloof to what are her true intentions.

Yūko receives a magic lantern, also called a "ground cherry", and asks Watanuki and Doumeki to take it to a very uncommon festival.

Doumeki studies some occult books looking for a way to restore Watanuki's sight, until a strange creature appears and starts to devour its contents.