The episode starts off with Kenshin doing laundry with Ayame and Suzume and Kauro practicing by herself inside the dojo. Kauro starts screaming about the fact that no new students are coming to study with her even though the fake Battousai incident has already been cleared up. Kenshin enters the inner room of the dojo where Kauro was loudly complaining and tells her that these things require time and that she should just wait patiently. She tells him that at times like these it is good to do something to cheer up, so she volunteers Kenshin to treat everyone to a nice meal at the Akabeko, the local Sukiyaki (beef fondue type thing) restaurant.
Kenshin, Kauro, Ayame, Suzume and Genzai Sensei (who magically appeared when the words 'free food' were first heard) walk towards the Akabeko. Kenshin suddenly stops, he notices a young man walking along the road and stealing a person's wallet from his pocket. A very young child standing next to the gentleman who has just been robbed seems very happy because his grandfather (the man who's been robbed) is going to buy him a present. The thief seems to have a change of heart and returns the money to its rightful owner. Kenshin pats the boy's head, and when the boy asks angrily what he's doing Kenshin replies that he thinks he is a very kind kid.
As Kenshin is dragged by the angry Kauro (who's been wondering why the hell he stopped to pat some kid all of the sudden), the young pickpocket notices that Kenshin is wearing a sword. Being the adventurous type, the kid tries to steal Kenshin's wallet. Kauro leaps and catches the kid just before he could run off with Kenshin's money. Kenshin returns the money to the boy, saying that he can't help it if his pocket got picked and continues on walking. The kid throws the wallet at Kenshin's head while screaming various insults and saying that he was just testing him because he had a sword. The kid's name is Myojin Yahiko, a descendant of Tokyo Samurai.
Yahiko is sitting next to a lake and thinking about the things Kenshin told him... A few men arrive and start beating the crap out of Yahiko because he didn't manage to earn any money pickpocketing today.
At the Akabeko a waitress tells the group about Yahiko and about how his parents died and that he must pay his mother's debt to the Shuei Yakuza. Kauro realizes that Yahiko is forced to pickpocket in order to survive and she decides to take action. She goes to the Kanto Shuei, the residence of the Shuei yakuza, in order to free Yahiko from the criminals.
At the Kanto Shuei, the yakuza men decide to treat Kauro to a game of dice, if she wins then she gets to take Yahiko with her, but if she loses she must be their servant as well. In this game the player must call either Cho (evens) or Han (odds), however there is a catch... The dice are illegally made (this is the Yakuza, y'know) and they will always show Cho. So Gasuke, a Yakuza with really freaky hair, calls Cho. And before Kauro notices anything she is forced to call Han. So they throw the dice and it ends up being 5 and 6, Han. How is that possible? Well it appears Yahiko can use his pickpocketing skills for positive things as well; While the man with the dice was preparing to throw them Yahiko switched the rigged dice with regular ones. So Kauro wins, but can she take Yahiko? Fat chance. Yahiko pleads with the Yakuza to let Kauro go. Kauro doesn't understand what he wants... She won, didn't she? He explains to her that they never meant to let her leave the place alive. After realizing that Yahiko switched the dice, Gasuke starts beating him up. However, this time Yahiko is standing up for himself and saying that from now on he is cutting his ties with dirty Yakuza and that he will pay his debt in legal ways. Gasuke starts laughing like a maniac and tells Yahiko that there was no debt and that it was all a lie to keep him as the Yakuza's dog, but with or without a debt he will always stay with them. Yahiko gets pissed and tries to land a punch or two on the yakuza but eventually he is too weak and gets completely beaten up by all of the Yakuza together. And that's where Kauro steps in, she uses her swords skill in order to protect Yahiko and she does it well, until she reaches Gasuke, who is obviously superior to her. He causes her to drop on the floor and he is about to kill her. Suddenly the boss's voice is heard, he asks Gasuke not to kill Kauro, cause it will ruin his launch. And then he asks Yahiko some questions about how he is going to live... Even with the boss trying to persuade Yahiko to stay, Yahiko does not change his mind and decides to stay away from Yakuza business. A Yakuza standing above Yahiko gets annoyed because Yahiko isn't talking nicely to the boss, he starts insulting Yahiko's parents. Yahiko gets really really mad and kicks the Yakuza directly in the nuts (ouch!). After seeing that display of disrespect the boss asks "Hittokiri" Gasuke to kill Yahiko. Suddenly the door opens with a kick.
Kenshin makes it just in time... He had already defeated all the Yakuza waiting for him outside and with one quick hit he makes Gasuke fly through the ceiling. Yahiko looks real impressed with Kenshin's swordsmanship abilities. He takes Yahiko and Kauro home and that ends that.
On the way home Yahiko cries because he wants to be strong in order to protect his parent's name. The decision has been made, from this day on Yahiko will study the Kammiya Kasshin Ryu with Kauro and train to be the strongest.