After learning of Kamui, Kagura's brother, Gintoki, Shinpachi, Tsukuyo and Kagura go to confront Housen. On their way the Hyaku that still follow Housen attack them. Tsukuyo stays behind to fend them off. At the end of the episode they are stopped by the Yato Abuto. Kagura and Shinpachi stay behind to deal with him as Gintoki heads off to find Housen.
This episode starts off with a meeting between Kamui and Housen this time the room has proper lighting. In this meeting Kamui is introduced as the captain of the 7th Division of the Harusame space pirates, which is also the division Housen founded. Kamui also makes it prevalent that Housen has gone soft in his retirement as when he asked for Hinowa with Seita by his side, Housen refused at all costs. Kamui then procedes to reinforce his claim and then insult Housen by calling him an “Old Pervert”. Housen then uppercuts him with his fan and sends him through the ceiling. It is then revealed that Kamui quickly swapped places with one of Housen’s servants before he struck.
Kamui then hypothetically asks how is he supposed to quench his thirst that is not quenched by woman or alcohol. He then strikes Housen, who quickly blocks his strike, however Kamui’s blow still grazed him. Kamui then reveals that his thirst is none other than a thirst for blood, that can only be quenched by fighting one equal or stronger than himself. Housen then remarks on how his eyes are the same as Umibouzu’s, there is then some backstory on how Umibouzo and Housen fought for three days straight before Umibouzu ended it in the most anti-climactic manner.
Gintoki, Shinpachi,Kagura, and Tsukuyo then resolve to return the sky to everyone in the Yoshiwara. Its then back to the battle between Kamui and Housen who are now battling on the rooftop. When one of Kamui’s henchmen tries to stop them the result is that he is kicked downwards through the rooftop. The battle then continues until Housen slams Kamui onto the rooftop and grabs him by the face. In response Kamui taunts Housen before he is thrown through a wall. Kamui then walks out of the dust cloud and remarks on how they belong on the battlefield before they both charge towards each other, then commercial break.
After the commercial break the fight has been brought to a stand still as both of Kamui’s henchmen have intervened, and at the cost of one of there lives and an arm the fight has been brought to an end. As Kamui’s fist has gone through the Yato who attempted to intervene’s chest, and Housen has sliced off the other Yato’s arm with his bare hands. The remaining Yato then remarks on how the last surviving members of their clan should’nt be killing eachother, he then explains the circumstances of why they were sent to the Yoshiwara, Kamui then tells Housen how he isn’t worth killing before leaping off the rooftop.
Its then to Tsukuyo where she is aiding Gintoki, Shinpachi and Kagura enter the main building by saying that they are new recuits. As soon as they manage to enter the building they are attacked by the Hyakka. Gintoki has also been hit in the head with a knife… again. Gintoki then removes the knife and denies being hit. Shinpachi then does his role as the “straight man” its then shown that Kagura, and Tsukuyo have done the same thing except that Tsukuyo doesn’t remove the knives as they are in her back. When the Hyakka charge, Gintoki, Shinpachi, and Kagura then reveal that they have hidden explosives.
It then cuts to Kamui and the remaining Yato who is bandaging up what is left of his arm before heading out as he is still in Housen’s debt. Kamui also explains his motivation and how he’ll kill all of his superiors if it comes to it. It then cuts back where Gintoki, Shinpachi, and Kagura have managed to get past the Hyakka with Tsukuyo holding them off. Before they go Gintoki takes Tsukuyo’s pipe as a motif for her to come back alive. As they run down the hall they are interrupted as Kagura is hit through a couple of walls. The Yato then says that they’re missing someone. Then he is hit through a couple of walls by Kagura. Who makes one last remark on how not to confuse her with earthling before the ending theme.