Otohime (乙姫) was the de-facto ruler of the Dragon Palace City. Otohime fell in love with an Earth inhabitant called Urashima, when he rescued one of her minions. She is now the owner of Snack Ryuuguujou in Edo, after being rescued by Sakata Gintoki when her palace was being destroyed. She is the main antagonist of Ryugujo Arc.
Once known to be an elegant, refined beauty, she had fallen into despair as she continued to age. She looked very much overweight as the ruler of Ryuuguujou, wearing heavy make-up. After a change of heart, she is a pretty, humble woman (now appeared to have lost some weight as well) without the luxurious kimono and make-up.
Prior the storyline of the series, an Earth inhabitant called Urashima was invited to the Dragon Palace City after he rescued one of Otohime's subordinates. He was well treated and spent time with Otohime, who fell in love with him. Urashima told her she was the most beautiful thing he'd ever seen in his life, not only referring to his beauty, but also to his kind soul.
Once he returned to Earth, Urashima found out that his village no longer existed, as the time in Earth and in the Palace passed in different ways. He fell in despair and tried to kill himself, but he was rescued by Otohime by putting him in a cryo-chamber, waiting one day that he would wake up again.
The soldiers came reported that they caught Kamenashi with some humans. She ordered Kamenashi to be executed and the others to get old. She also wanted them to get the most beautiful one to her. When Tae came, Otohime stated that she isn’t beautiful at all, angering Tae. She wanted to execute Tae due to her insults. When Otae said to Otohime that she was ugly and didn't know what real beauty was moments before her execution, Otohime dropped her in a pool full of sharks. Kagura and Kyuubei came to save Tae and freed her from the rope, then teamed up to kill the sharks as well as Otohime's subordinates. After that, Tae beat up the last guards protecting Otohime and the two engage in a battle, doing a "Nose Hook" and repeatedly slapping Otae. As their fight continued, Otohime revealed that she is planning on firing her Tengenjurouhou on Edo to plunge the city with her virus, to make sure that no one will be able to escape from it. Their fight was interrupted when her subordinates surround Otae with their guns, buying Otohime enough time to let the poison spread inside her palace, letting everyone, including her own subordinates, age extremely fast. As Shinpachi, Gintoki and Katsura proceeds to the canon room, she tried to order her subordinates to stop the three from reaching the room. Seeing how fast they are compared to her subordinates, she decided to stop them herself.
She went to stop Gintoki and Katsura, but Hasegawa and Kamenashi tried to stop her. Then Kagura and Kyubei came to stall her by thinking that she was their son’s bride. Furious, she plowed through them, running in full speed to catch up to the antidote, but was stopped by Shinpachi, who tackled her down. Before Gintoki and Katsura could put the antidote to the canon, she caught the antidote and made it fall down. But the antidote leaked, resulting in Katsura and Gintoki return to their former selves, grabbing a nearby hammer and shot the antidote to the cannon.
Because of the power of the shots, the palace crumbled and was on the verged on being destroyed. As the palace was crumbling, debris starts falling and fell on her. Feeling lost and giving up hope, she ordered her subordinates to flee from the palace, leaving her in the process, before it sinks to the bottom of the ocean. Unable to do anything, she thanks them from saving her from her, saying that she will finally rest in peace with the man she loved. Gintoki decides to lift the debris to try and free her, encouraging her to live on for the sake of her lover, making her remember Otae's words. Touched by their actions, Otohime cried as she is unable to hold back, while everyone remaining on the room helped her be free from the debris. The Ryugu Palce got destroyed and sunk to the bottom of the ocean.
Some time later, Otohime opened a small snack house where Hijikata and Kondo become its regular costumers. The drunk Kondo asked to marry with Otohime, but she said that she already has someone, making Hijikata curious and ask for her story. As they converse, a person came in the snack house. She told them that she was once a queen of a palace, and Kondou laughed at the story, asking her for advice. Otohime told him not to waste time on meaningless words. The person then complimented her, saying that she is as beautiful as she was in the past. After hearing those words, she gave the person an honest smile.
- She is based on Princess Otome, from the legend of Urashima Tarou.