One rainy night, a pregnant woman pleads for shelter at the inn. The old innkeeper smells trouble but lets her stay in a room that never takes guests.
The Zashiki Warashi are the root of the strange events. As the truth about the inn is revealed, the Medicine Seller prepares to draw his sword.
The Medicine Seller joins a spiritualist and others aboard a merchant ship bound for Edo, which goes off course and gets attacked by Ayakashi spirits.
Saved by the Medicine Seller, the ship searches for an escape route. Another Ayakashi spirit, the Umi Zatou, appears and exposes their deepest fears.
After a hollow boat imprisoning a human sacrifice to the Ayakashi spirits appears before the merchant ship, the passengers gather to peer inside.
A woman is captured for slaughtering her husband and their family. The Medicine Seller smells the work of a mononoke and interrogates her mercilessly.
After facing the man in the Noh mask again, the Medicine Seller discovers Ochou's relationship with her mother lies at the root of the murders.
Three men compete to win the hand of Lady Ruri, the heiress to the Fuenokouji house. While her tests stump them, a male body is found on the premises.
Undeterred by death in the house, a family treasure drives the men to continue the incense competition. Their obsession only invites further tragedy.
Crowds cheer the opening of the new subway. The train boards guests and leaves for its first run -- all but seven including the mayor vanish.
The Medicine Seller determines the subway incident to be the work of a mononoke. He uncovers a hidden link between the seemingly unrelated passengers.
Passengers vanish each time the truth is told, until only the Medicine Seller and another remain on board while the Bakeneko grows in strength.