It is the Taisho Period (i.e. 1912-1926). Tanjiro Kamado is living a modest but blissful life in the mountains with his family. One day, when he returns from selling charcoal in town, he finds the remains of his slaughtered family in pools of blood after a demon attack. Tanjiro rushes down the snowy mountain with the sole survivor, his sister Nezuko, on his back. But on the way, Nezuko suddenly snarls, turning on Tanjiro.

Swordsmen in the Demon Slayer Corps known as Hashiras have arrived on Mt. Natagumo. Giyu Tomioka, the Water Hashira, slays the Father Spider Demon with a single strike. Inosuke, thrilled to see such a display of swordsmanship by someone in a totally different league from himself, challenges Giyu to a duel. Meanwhile, Zenitsu lies near death as the poison circulates throughout his body. Just then, the Insect Hashira, Shinobu Kocho appears before him.

Tanjiro's group, fresh from completing their training at the Butterfly Mansion, head to their next mission, the Mugen Train. There they rendezvous with Rengoku, who arrived ahead of them. Tanjiro is overwhelmed by the always-energetic Rengoku, Zenitsu is frightened by the prospect of facing demons as usual, and Inosuke is immensely excited by the sight of the huge machine. But on this train loaded with passengers, a new battle is about to begin.

Tanjiro, Nezuko, Zenitsu and Inosuke join Rengoku on the Mugen Train. Having heard that there may be demons on the train, they are on high alert, but they find themselves falling into a slumber. Within his dream, Tanjiro is reunited with his long lost family. However, it is soon revealed that this is a trap set by Enmu (Lower One).

Tanjiro, Zenitsu, Inosuke and Rengoku have fallen into a deep sleep while under the control of Enmu's Blood Demon Art. As Enmu attempts to use his accomplices to destroy the spiritual cores of Tanjiro and his companions in order to defeat them, Tanjiro realizes that he is inside a dream and searches for a way to wake up. In order to awaken from the dream, Tanjiro makes a decision to use his sword to cut into his own neck.

After Nezuko attempts to attack innocent bystanders as her demon form advances, Tanjiro is finally able to make her fall asleep by singing a lullaby. Meanwhile, another demon emerges out of Daki's body after being beheaded by Uzui - Gyutaro, Daki's older brother and the other form of Upper Six. Uzui must now face both demons, Daki and Gyutaro.