This episode picks up where episode one left off. Kaede tells Kagome to "pay no heed to Inuyasha". Inuyasha says he hates the smell of Kagome. He tries to take the sacred jewel from her, and she falls down. The villagers who are watching near by are afraid to attack inuyasha. Kaede pulls out some prayer beads and puts them on Inuyasha, and then she tells Kagome to say a word of subjugation. The jewel, which fell from Kagome's hands when she fell, is now rolling down a rope bridge. Inuyasha is about to pick up the jewel when Kagome yells, "Sit boy!" The prayer beads around Inuyasha's neck light up and he slams into the ground. He then tries to remove the necklace, but he cannot. Kagome tells him to "sit" again and he crashes though the bridge. Kagome then goes and picks up the jewel.

Back at the village, Kaede tends to Kagome's wounds. Inuyasha is laying on his side in front of them. Kagome asks Inuyasha why he's there, and he replies that he is waiting for the jewel. Kaede tells Kagome that Inuyasha is not a threat anymore, and that he is only a half demon. Inuyasha angerly punches the ground, calling Kaede an old hag whom he just met. Kaede says, "So you don't remember me. I am Kaede, younger siter of Kikyou". There is a flash back of Kaede as a young girl. Inuyasha says that if Kaede is that old, Kikyou must be really ancient by now, and Kaede tells him that Kikyou died. Inuyasha smirks and says it's not like he cared anyway. Kaede says she knows that Kagome is the reincarnation of Kikyou. Outside, the villagers bow to Kagome, wispering that she is the reincaration of Lady Kikyou. Inuyasha is resting up in a tree, and Kagome walks over to him. She throws some food up to him and asks him if he eats. He asks her where she got all the food and she replies that the villagers gave it to her. Kagome tells Inuyasha she knows he doesn't like her, and she said she doesn't think that that's fair because it's really Kikyou that she doesn't like.

Back at the village, Kagome realizes she has been there for two days and she remembers her family. While Kagome sleeps, Inuyasha is outside fending off crow demons who have come for the jewel. The next day, Kagome goes out to the well to try to find a way back to her own world, and she is kidnapped by bandits who have come for the jewel. The bandits comment on Kagome's short "kimono". Suddenly, their large leader begins swinging wildly at everyone with his sword, knocking down part of the building they are in. The other bandits are afraid, and Kagome yells at the them saying, "Can't you see something is wrong with him?!" Kagome begins to help some of the bandits that have been trapped in the wreckage. Then Kagome remember the jewel is around her neck, and she throws it in order to get the bandit leader away. The leader is distracted and Kagome tells the other bandits to push the wall out so that they can escape. The bandits call Kagome boss, and she gets upset telling them that she is NOT their boss. The big leader comes at Kagome, and suddenly Inuyasha steps in and saves her. He asks her where the jewel is. Kagome answers, "Jewel?" The leader comes at them again and they notice that his living heart has been eaten out by the crow demons. Outside, the jewel sparkles on the ground. A crow swoops down and picks it up. Inuyasha picks up Kagome and carries her on his back, and takes off running after the bird. He gives Kagome a bow and arrows and tells Kagome to shoot the bird. She says she's never done it before, but she'll try. Inuyasha says that Kikyou was a master archer. Kagome shoots to arrows which pathetically fall short. Inuyasha is angry and drops her. The crow demon swoops down and picks up a boy from the village. Inuyasha jumps and attacks it and the boy falls into the river below. Kagome asks if anyone is going to save him, and when no one volunteers she takes off her shoes and socks and jumps in. She swims out to the boy saying to herself that she's glad she took swimming lessons. The villagers are amazed that she can swim so well and call her a demon. The crow begins to put itself back together from inuyasha's attack, all except it's leg which is lying on the ground near Kagome. Kagome sees the leg and gets an idea. She borrows a bow & arrow from a villager and ties the crows leg to the arrow. Inuyasha realizes this is smart because the leg will go toward the bird and try to rejoin with it. Kagome lets the arrow go and it flies straight the bird. The arrow hits the bird, and the Shikon jewel inside of it. As the arrow hits the jewel, it glows and begins to crack. The jewel shatters and pieces of it fly in every direction. On the ground, Inuyasha and Kagome are looking for the jewel. They here a rustling from the bushes, and the crow demons head comes flying at them. Inuyasha distroys it, and a shard of the jewel falls from it. Kagome picks it up and they both realize that the jewel has been shattered.