Rikuo Nura is a middle school boy who lives in an old house filled with yōkai and their supreme commander, his grandfather Nurarihyon. Despite possessing a quarter of yōkai blood, Rikuo goes out of his way to try and live a normal life as an upstanding human - berating his grandfather for sneaking into the neighbors' house for breakfast, running errands for his classmates, etc.
At school, Rikuo buys various breads for his classmates and is pleased to be able to do such good deeds and make people happy. While helping his neighbor Yura Usami put away school supplies, Rikuo is asked about his reasons for always complying with his classmates' wishes. Yura worries that someone is threatening him, and tells him that he should tell her so she can help him. Rikuo inwardly muses on how difficult surviving in human society can be. Back in the classroom, some students are talking about a TV show centering on a spirit medium named Daikaku Bandain which had aired the previous night. Yura declares her hatred for mediums, spirits, and the like, and later has a brief talk with Rikuo on the same topic. He repeats her earlier offer, stating that he will help her with whatever she needs him to do.
Yura stops by her grandfather's store near the train station, where Daikaku Bandain has convinced the old man that his weak constitution is due to the presence of yōkai. He tells Grandfather Usami that the store must be abandoned, and says he will take it off their hands as an act of kindness. Yura doesn't believe it is kindness at all, and tries to throw both Daikaku and his cohorts out - resulting in them accusing her of being possessed and kidnapping her. When Rikuo learns of this soon after, he hurries to the Usamis' store and has a run-in with Daikaku's cohorts, the Shūei Construction Group. They trash the store, knocking Rikuo down and boasting of the superiority and power of their (yakuza) group. Rikuo's attitude changes as his hair lengthens, and he states that there are apparently humans he can't get along with after all before telling Karasu Tengu to gather the Nura Clan.
That night, a Hyakki Yakō walks through the streets with a longer-haired Rikuo at its helm, heading toward the temple where Daikaku conducts business. Meanwhile, Daikaku is having a meeting with the Shūei Construction Group concerning how to deal with their newest piece of "real estate" - the land on which Usami's store sits. It is revealed that their earlier exorcism was just a sham. Yura, who is tied down as a captive, overhears the entire conversation and accuses Daikaku of being a greedy fake. He, in turn, claims that she has become delirious and needs to be purified - right before ripping open her blouse and straddling her. Before he can commence this "purification," however, the Nura Clan's Hyakki Yakō bursts through the wall and Rikuo rescues her. A battle between the Nura Clan and the Shūei Construction Group members commences, and Rikuo challenges Daikaku to prove that his spiritual powers are real. The latter accepts, lunging at Rikuo with a holy sword and then grinning when his attack seems to have worked. An instant later, his sword shatters and Rikuo ends the battle with a slash of his own blade - proclaiming himself to be the future lord of all spirits.
The following morning, as news of the previous night's incident sounds from the TV, Rikuo laments having gone overboard. Running late, he ends up being tricked into using Oboro-guruma as transportation to school. Meanwhile, in the classroom, Yura ponders her rescuer and wonders about the strange sound she hears of the approaching yōkai vehicle.