Episode 136

A Strange Invisible Demon Appears! is episode 132 of the InuYasha anime.

Plot
In a village the richest families belongings and valuables are being stolen by a demon who seems to be invisible and is able to get through any house, regardless of the security measures taken. When an old woman (who has made an appearance in a previous episode) asks Kagome, Inuyasha and the others for their help to protect a family's house when it is likely to be next targeted and to help catch the demon.

Meanwhile, Shippo is tired of InuYasha constantly picking on him and works to perfect some demon magic to make himself invisible. At first it seems like it works...but what he doesn't know is that the magic wears off in a matter of minutes rendering him visible once again.

After staying up all night, the demon sneaks into the family's house to steal their valuables. Shippo then sees that the demon isn't invisible, he's just paper thin and able to slide through cracks and the space in between doors. After realizing his demon invisible magic doesn't work, he is almost defeated by the demon before the rest of the group comes to save him and InuYasha captures the demon. When asked how InuYasha could sense him by the demon, InuYasha states that he was the only one there with an unfamilar scent.

The demon then begs to be spared, and they agree on the condition he return everything he had stolen from the villagers; which turns out to be more than they thought. In the end, the demon agrees to stay away from humans as to not be tempted to steal again and when Shippo says he thought he saw "his first invisible demon," InuYasha calls him stupid, but not in a mean way; you can't see something invisible and the others go, "Oh."