Kyo meets Yukimura on his way to Edo, the capital of Shogun Ieyasu, to carry out Mahiru’s vengeance. His Muramasa starts shaking as they walk along a bridge. Under the bridge is Migeiya, who does an attack to fend off the guards and then jumps up onto the bridge. Migeiya is very interested in Kyo’s Muramasa and vows that in the name of world peace, he will take it from Kyo.
After that meeting, Kyo and Yukimura enter a place covered in fog. It is Kozugahara, a place that was once an execution grounds for criminals. Now Kenyou inhabit the place. Shogun Ieyasu still believes that Yukimura is imprisoned there.
Sakuya discusses Yukimura’s intentions with her servants. The winner of the tournament is bestowed with the Tokogawa treasure, another Muramasa called the Hokurakushin. Ieyasu will present the treasure to the winner. Sakuya is uncertain whether Yukimura wants to kill Ieyasu, wants the sword, or wants to confirm that Kyo’s personality has fully awakened. However, if they both enter the Gozen Jiai and do well, they will have to fight each other.
The Shogun and his protectors discuss security plans. He tells them to erase those who have been sent by a daimyo to assassinate him. Hanzuo objects, stating that will start a war. Ieyasu replies that the war never truly ended. He has Jyukamen, a man with a beast mask, enter the Gozen Jiai as another precaution.
The Gozen Jiai takes place with Mikogami Tenzen, the sword master for Tokugama, as judge. Mikogami Tenzen left the Yayuu Shinkage Ryuu school and became ‘onoha itto-ryuu’ or one without a specific style. The first round has Kyo fighting. He asks to fight everyone in the first group at once, and defeats them all effortlessly to emerge the winner. Red Tiger won the second group battle. As Red Tiger brags to Yuya, Kyo overhears and tells him he won’t be going easy on him if they end up fighting.
Later that night, Red Tiger meets his sensei, Mikogama Tenzen, who offers to teach him the most powerful attack he knows. Red Tiger declines the offer, stating that he has his own reasons for wanting to fight Kyo, and that he knows he cannot win the match.
The next day, the second round takes place at Hibiya Bay. Yukimura shows up dressed as a woman called Kouhaku, and the winner of group 8 from the first round.