Now deep into Juraian territory, Tenchi and the gang decide to take a ret stop on an uninhabited planet, amongst the ruins of the old imperial Juraian villa. The ruins contain two statues- one of the legendary warrior Yosho (a handsome young Katsuhito), and the other of another, anonymous warrior.
Although the other warrior is not recorded in Juraian history, Katsuhito knows who he is- the two of them were contemporaries. This second warrior was accomplished both intellectually and physically, and would have been remembered in the history books, if not for one thing. The warrior was also a member of the Jurai royal family, and over time he became obsessed with the Jurai power. He spent countless hours trying to refine and increase his own powers, losing his compassion and humanity along the way. Many stood against him, but only one man was able to defeat them. That man was Yosho, or, as he is now known, Katsuhito- and the warrior he defeated, Kagato, is most likely the enemy that they must now face.
There is much to think about, and whilst Tenchi, Ayeka, Ryoko and Katsuhito go off to be alone, the others start cooking dinner. Unfortunately, food supplies are low- the only thing left to eat is carrots. No one seems very thrilled about an all-carrot dinner, but when the alternative is to go hungry, none of them are about to refuse to eat it.
Meanwhile, Tenchi sits under a tree by himself, contemplating the revelations about his Juraian heritage- he isn’t quite the normal teenager he always thought he was. Approaching him, Ayeka is well aware of what is going through his mind, but to her there is also a bright side to this new discovery. Much as she enjoyed her time on Earth, she always knew that the duties of a princess would one day take her back to Jurai. But if Tenchi is also a member of the royal family, there is no reason why he couldn’t come back with her, and maybe even assume the throne himself. Ayeka’s secret dream is that she and Tenchi could be together, and now, it seems that there is a possibility that her wish could be fulfilled.
Katsuhito has also gone off by himself to think, but as he wanders through the old ruins, he suddenly senses a familiar presence- Kagato. His old adversary knew he would come here, and has arrived for a rematch with the legendary warrior who once defeated him. Katsuhito is ready to oblige, and draws a sword hilt from which he creates a blue blade of Jurai blade. Withdrawing his own, black-bladed energy sword, Kagato goes on the attack.
Katsuhito is ready for Kagato’s attack, and easily withstands his opponent’s blow- he has lost nothing in the many years since they fought last. However, in that time Kagato has also improved, testing and refining his skills. Where once Katsuhito was superior to him, now the two seem evenly matched, and for a time the battle seems like a stalemate, with each warrior being able to shield themselves from the other’s blows.
After Kagato finally sends Katsuhito flying, the old man gathers in his power, reluctantly realising that he will once again be forced to defeat the man he once thought of as a friend. Sensing Katsuhito’s strength, Kagato realises his adversary’s plan- Katsuhito is ready to sacrifice his own life if it means killing Kagato as well.
Kagato is now too strong for that tactic, however, and he responds to Katsuhito’s attack with a massive energy blast that. As Katsuhito is knocked out from the attack, the resulting shockwave alerts the others, who quickly realise what is going on. Ryoko is first to arrive on the scene, and she quickly launches her own attack on Kagato. Her powers are no match for him, however, and Kagato soon launches a counterattack energy bolt that pierces Ryoko’s body and knocks her to the ground.
Tenchi and the others soon arrive, horrified to see both Katsuhito and Ryoko taken down by this fearsome opponent. Whilst Tenchi goes to Ryoko, Azaka and Kamidake move in to shield Katsuhito, only to get flattened by Kagato’s next energy blast. Whilst the two knights struggle to their feet, Tenchi moves to interpose himself between Kagato and his grandfather, his only weapon a simple wooden blade.
Kagato is ready to brush Tenchi aside, only to stop short when he sees the boy’s resemblance to the young Yosho. Realising that Tenchi must be a descendant of his old adversary, Katsuhito decides to postpone their fight- they will have a far more satisfying battle back on Jurai. Summoning his spaceship, Kagato departs, taking an unwilling Ayeka with him. If Tenchi wants to get her back, he will have no choice but to make it to Jurai and face Kagato in battle.
As their enemy departs, Tenchi turns to his grandfather. Katsuhito may have survived the battle, but he is no condition to fight again any time soon- that duty must fall to Tenchi. To that end, Katsuhito hands over his weapon, the Tenchi sword that channels Jurai power into an energy blade. Tenchi must accept the sword, and with it, his destiny- for he is the only one able to wield the power that can destroy Kagato.