In feudal Japan, the half demon Inuyasha was sealed away by the priestess Kikyo. Many years later he is revived by Kagome, who has slipped through time from the present day. Kagome is surprised when the sacred Shikon Jewel, which makes demons stronger, emerges from a cut on her body.

Kagome finds out that she may be the reincarnation of Kaede's late older sister, the priestess Kikyo, who sealed Inuyasha with her arrow. The Carrion Crow demon is after the Shikon Jewel and kidnaps Kagome, but Inuyasha shows up to save her. After Kagome defeats the Carrion Crow with an arrow, the Shikon Jewel shatters into pieces.