At the end of the Edo period in Kyoto, the ronin Kurayoshi Norizen rents the second floor of a hardware store and lives a carefree life, running a temple school. However, his true identity is Kurama Tengu, who appears to help a patriot in a difficult situation when he is attacked by the Shinsengumi, and then disappears like smoke.

Zatoichi is sworn to protect the life of a young girl and without any real allies finds himself in the middle of a bloody turf war.

Blind swordsman/masseuse Zatoichi befriends a young woman returning home with her baby. When gangsters mistake her for Zatoichi and kill her, Zatoichi determines to escort the baby to its father. He gains the reluctant help of a young pick pocket and together they travel to find the baby's father. But they do not reckon on the father's reaction to their arrival, nor on their own growing feelings for the child.

Returning to the village where a year before he had killed Hirate, a much-admired opponent, Zatoichi encounters another swordsman and former rival in love.