Episode 5 (Hanyō no Yashahime)

"Jakotsumaru of the Red Bone Palace" is the fifth episode of Hanyō no Yashahime.

Synopsis
With Root Head defeated, Towa cannot return to the Modern Era, and further resolves to help Setsuna. The pair seek a beautiful but evil demon boy that steals human skeletons.

Moroha continues pursuing dangerous bounties to pay off her debts to the demon corpse dealer Jyūbei, returning to the Red Bone Palace. The trio rejoin to take on the first of the Four Perils, Tōkotsu. Already defeated by Moroha, but resurrected by his son Jakotsumaru's collected skeletons, he now seeks revenge for the loss of his body and reclaim the red Rainbow Pearl from Moroha.

Summary
The demon Jakotsumaru attacks humans to collect their bones in order to revive his father, the demon Tōkotsu after it was slain by Moroha, who retrieved the Red Rainbow Pearl from his corpse. Once learning of the situation, Kohaku sends Towa and Setsuna to deal with it, eventually meeting Moroha, who intends to retrieve Tōkotsu's head and receive a large reward for it to pay off a debt she owes. Accompanied by Myōga, who reveals Tōkotsu is one of the Four Perils who work for Kirinmaru, the three eventually discover Jakotsumaru's hideout and confront him.

Setsuna dismisses Towa as naive when she hesitates to attack Jakotsumaru simply because he looks cute and thinks Moroha apologizing for killing Tōkotsu would be enough to end the conflict, but Towa is eventually convinced to fight Jakotsumaru's skeleton minions. Moroha defeats Jakotsumaru, but Tōkotsu's head attacks her and she uses her secret technique to awaken her demon blood, dealing massive damage on the enemy, but losing consciousness soon after, leaving Towa and Setsuna to deal the finishing blow. With both demons destroyed, their palace vanishes without a trace, leaving no bounties for the three girls as all traces of their bodies vanished as well.

Trivia

 * From this episode, Inuyasha can be further seen behind Sesshōmaru in the opening.
 * The plot of this episode is essentially the same as the arc with the Bone Demon and her father as it uses scenes that were not adapted in Episode 179 of InuYasha The Final Act.
 * Its revealed that Setsuna had met Miroku at some point, not knowing his relationship to Kohaku as his brother-in-law.