Episode 123

Beyond the Darkness – Naraku Reborn! is the one hundred twenty-third episode of the InuYasha anime.

Synopsis

 * 1) After Inuyasha kills Bankotsu, the inside of Mount Hakurei begins to react strangely, almost as if it is the inside the body of a demon.
 * 2) Naraku finally makes his reappearance, with a new body and powers.
 * 3) Naraku takes last two Jewel Shards from Bankotsu's corpse. He also takes Kagome's Jewel Shards from Banryu's remains, and the five Jewel Shards Inuyasha took from Bankotsu.

Summary
Inuyasha wakes up trapped inside a pillar of flesh, reuniting with Kagome, Shippo, Kirara, Miroku, and Sango. Naraku shows his face, saying that Mt. Hakurei has become part of his new body. He reveals Bankotsu's corpse, trapped in one of his tentacles, and takes his last two Jewel Shards. Inuyasha is enraged, saying that though Bankotsu was a villain (and Inuyasha had intended to kill him himself), he wasn't nearly as evil as Naraku. Naraku takes Kagome's Jewel Shards from the remains of Banryu, and the other five Jewel Shards from Inuyasha, combining them into one and creating a new body for himself, which includes vertical eyes on his chest and hands, and three tails.

Inuyasha uses Wind Scar on Naraku, but his demonic aura within the mountain of flesh causes it to ricochet endlessly. It is clear Naraku is more powerful than before. Noticing two Jewel Shards inside Naraku's barrier that she's sure belong to Koga, Kagome shoots Naraku's barrier with a Sacred Arrow, dispersing his demonic aura and releasing Koga from inside him, sending Koga falling. Mt. Hakurei begins to collapse, and Naraku says he is going after Kikyo.