Outside, Kouji(Tasuki's buddy bandit friend) leads a group of bandits to avenge Tamahome/Nakago for killing Taskui two year ago(see the time line discrepency?), and they attack. Tamahome rushes to see what's going on and is confronted by Kouji, Tamahome tries to defend himself from the attack, but lets out Nakago's chi blast instead, which kills Kouji. Tamahome rushes to Kouji and ask him why this happens. Tamahome insists that he is Tamahome, and Nakago is the one with blonde hair and blue eyes. Then Kouji responds, "Blonde hair, blue eyes. That's my friend Tamahome!" And Kouji dies. Suddenly, everything disappears and Tamahome's back at Moutain Taikyoku.
On the other hand, Yui is having trouble getting asleep, suddenly her eyes become green and the magical book appears. Yui became Genbu no Miko-the fifth miko, thus will make the other miko disappear in the book. Yui goes into the book again in her uniforms. Miaka at this time arrives after Yui is gone and found the book, so she starts reading to see what's going on.
Back into the book world. Tamahome is at mountain Taikyoku, Chichri and Tasuki arrive also, and so is the Tomo. Then as Miaka read, she found out, the Seiryuu seishi blue eyes Nakago appears and so is a new evil force who introduces him self as Tenkou. So Nakago appears, and asks Tomo, "Were you teh one who disturbed me in my sleep?" And Miaka is changing into her uniform to follow Yui into the book. Episode 2 ends.