The opening scene is of a space battle in which a huge ship destroys several smaller battleships.

The scene shifts to Galaxy Police Headquarter where the news of their defeat is delivered by the Marshal. The person responsible is Kagato and he appears to be heading to the Solar System, a non-interference preserve. He wants the case handled immediately. The only person that is on duty in that sector is Mihoshi and we learn that she has had many reports of misconduct against her. The commanders aide has an idea of how to get rid of all of the bills and Mihoshi and tells the commander to leave everything to him.

Mihoshi is assigned to keep an eye out for Kagato and report to headquarters at the first sign of him. She confirms that she will capture the dangerous criminal and it becomes quite apparent that she has a few loose brain cells.

Back on Earth, we join Tenchi and the gang as they arrive at a hot springs resort. As Tenchi is unpacking the luggage Ryoko wants to flirt. Tenchi doesn't seem in the mood and Ryoko gets mad because he flirted with Ayeka in the tool shed and he won't with her.

Later that day Tenchi's father, Noboyuki, tries to convince Tenchi that they need to "peep" on the girls while they are in the hot springs. He drapes his towel over his head in the traditional peeping attire and climbs the rocks to look over the fence. When he gets to the top he's confronted by a naked Ryoko and falls to the water below. Ryoko takes Tenchi over to the girls bath.

Sasami and Ayeka come out and find Tenchi and Ryoko in the bath together. Ayeka and Ryoko start to argue (what's new) and it escalates to the point that Ryoko "explains" the reason she is called Ryoko - The Devil Caller. She calls forth a demon and orders it to attack Ayeka but realizes too late that she cannot control it without a gem on her right wrist (since Tenchi has only returned one of the gems to her). As the creature takes after Ayeka, Ryoko yells for Tenchi to get the sword.

In space Yukinojo, Mihoshi's computer, informs her of the energy pocket opened on Earth by Ryoko and of the fact that they are traveling at a very high speed towards the pocket.

The demon does a lot of damage to the inn and they all end up back in the bath where Tenchi confronts the monster. His sword doesn't work and the monster smacks him into the air. Ayeka yells at him to remember his training and the sword starts to work again. Tenchi attacks the creature but, although the sword cuts right through it, the creature reconstitutes itself. The battle is interrupted by the arrival of Mihoshi's ship which creates a black hole, sucking the creature and Mihoshi's ship back into it. Tenchi is also dragged up and Ryoko flies off to save him. He sees Mihoshi and grabs her. The portal closes and they all fall back and land in the bath. On the way down Mihoshi drops her Galaxy Police communicator / tracker thingy and Ryoko, knowing what it is, picks it up.

Finally Mihoshi comes around and meets Ayeka and Sasami. Mihoshi realizes that she has lost her communicator / tracker thingy and starts to panic. Ryoko comes in and holds out the communicator / tracker thingy and asks Mihoshi what the Galaxy Police want on Earth. Mihoshi finds that the communicator / tracker thingy has been fixed and decides that, in order for Ryoko to have fixed it, she must be a... jeweler (duh).

The fixed bracelet shows that the nefarious Ryo-Ohki is nearby and she pulls her weapon out and "tracks" him to Ryo-Ohki sitting on Sasami's head. Ryo-Ohki takes a bite out of her gun and Mihoshi faints. The innkeeper comes in with Noboyuki and demands an explanation.

That night, when everyone is asleep, Sasami has a dream. In her dream she is calling for Tsunami and cannot find her. She is floating in darkness when she sees Kagato and wakes up. She hears Ryo-Ohki outside and goes out to check on her. She looks up to see what Ryo-Ohki is looking at and sees Kagato's ship, the Souja, passing in front of the moon.

Kagato materializes in the cave that once housed Ryoko and then her materializes on the bridge of his ship, his chapel. Talking to himself, he thanks Ryoko for collecting the crown prince of Jurai, Prince Yosho and the two Princesses for him.