Inuyasha and friends arrive just as Kōga kills a demented looking demon. The wolf & the dog bicker as usual. When the group sees the strange light that came out of the demon, Sango asks if they're souls, and Miroku says they're not: they're Haku. He explains that all life, whether Human, Demon, or Animal, have two distinct forms of life in them: The Kon which is the individual soul and personality, and the Haku, which is what animates the body, the actual life force. And as Inuyasha thought, all of these demons will just keep running a muck as long as the Haku is inside them. The conversation causes Kōga to shudder, and he says that it's unnatural, then grabbing Kagome and declaring he will protect her, which annoys Inuyasha. Once again, the wolf & the dog bicker with each other. When Kagome defends Kōga, Inuyasha says she's too nice to him. Kagome then says that maybe she thinks Inuyasha is too nice to Kikyō, which sharply ends his objections for a few moments. After some thought, Inuyasha says it's different because he doesn't put his arms around Kikyō's shoulders. He then gets Osuwaried by Kagome multiple times. Kōga leaves, starting to think Naraku is involved with these strange looking demons.
Later, another of the Haku-animated demons attacks a village and almost kills some farmers, but they're saved by Inuyasha. Yet another one appears, and is killed by Sango's Hiraikotsu. Miroku thinks it's over, but Inuyasha smells more of them.
Kagome sits with Sango instead of riding on Inuyasha's back, angry at him for his behavior insinuating that she would cheat with Kōga, when he says he isn't with Kikyō. Miroku asks Inuyasha to apologize because he misses snuggling Sango from behind while riding on Kirara. Inuyasha then drolly says he doesn't feel sympathy for Miroku's situation.
Tracing the demons by scent, the group come upon yet another grotesque looking demon at another village. Inuyasha kills it, as well as another one that appears. The group remarks that these demons look less disgusting than the other ones have, as these have almost human-looking faces. Kagome wonders if all the older demons were just prototypes for these. She wonders "Does that means that the next ones.. will look even more human?!"
Kōga is following the scents of the demons when he is greeted by Hakudōshi. The incarnation says he has come to collect the wolf's jewel shards. Behind him is yet another of the deformed demons, but this one appears to be entirely human-looking.