Tenchi is in the fields picking carrots and sees Ryo-Ohki eating some. Ryo-Ohki starts to hiss as snow begins to fall. This is the first snow she's seen and she runs scared towards the house.
Ryoko relaxes in the onsen drinking sake and watching the snow fall onto the force dome when Ayeka comes in. Ayeka joins her in the bath and downs some sake. They have a bit of an argument and Ryoko reminisces about seeing Tenchi from the cave when he was a little boy. Evidently, even though she was locked up inside, her astral form could watch things outside the cave. Mihoshi joins them as well and they proceed to drink mass quantities of sake and tell their own tales of their love for Tenchi. A glowing green ball appears over the dome and lowers to the floor. Kagato steps out and captures Ryoko. Tenchi comes running and Mihoshi's bracelet starts bleeping.
Mihoshi, Tenchi, Ayeka and Sasami all gather around Funaho, Yosho's space tree, and Mihoshi demands that Kagato show himself. When he does he brings Ryoko with him and deposits her on the ground unconscious. He starts to move toward Ayeka and Sasami when Mihoshi attempts to stop him. She empties her power pack with no effect. Tenchi comes at Kagato with the sword and Kagato uses a gale force wind to drive him back. As he reaches toward Tenchi, Ryoko saves him but Kagato uses his control of the gems to turn Ryoko against Tenchi.
Ryo-Ohki bites Kagato while Tenchi throws Ryoko off and attacks Kagato. Kagato fairly well kicks Tenchi's butt. As Kagato calls the sword to him it is whipped away into the hands of Katsuhito, Tenchi's grandfather. Kagato reveals that Katsuhito is actually Yosho, first crown prince of Jurai and also that he intends to have the power of Jurai for himself. Katsuhito battles Kagato and seems to get the upper hand.
Suddenly the controlled Ryoko attacks him from the sky and he has to battle both Ryoko and Kagato. He releases Ryoko from his power by cutting the gem and her hand off. He then throws the sword into Funaho, his tree. When Kagato grabs the sword he is given a severe shock. Reeling, Kagato intuits that Tenchi must be Yosho's successor. He renders Ryoko unconscious and retreats to his ship with the challenge given for a rematch.
Ayeka confronts Katsuhito / Yosho about the revelation that he is her brother. He explains that when he left Jurai to follow Ryoko, he never meant to return. His mother is an Earth woman and in those days there was a dispute about interracial marriages. If he and Ayeka were to have been married, there would have been questions about the succession to the throne. With a sudden change of mood, he offers marriage to Ayeka and when she refuses offers Tenchi and a possibility.
Tenchi says he must rescue Ryoko and Ayeka disagrees. Katsuhito says that he must because, in his quest for power, Kagato could and would destroy Earth if necessary. He gives Tenchi the sword and tells him that he has powers that have not been awakened yet.
They are all ready to go battle Kagato and they realize they have no way to get there. Ryo-Ohki meows and leads the group to the lake where the control section of Ayeka's ship rises out of the water. Ryo-Ohki jumps into the air and transforms into a spaceship drawing the section of Ayeka's ship into herself. Tenchi, Mihoshi and Ayeka board Ryo-Ohki and head off to confront Kagato.
On board the Souja, Ryoko is held captive as Kagato prepares for their arrival.
Kagato's ship fires on Ryo-Ohki and scores a hit. None of the group know how to control Ryo-Ohki and so cannot return fire. Tenchi suggests that they use Ayeka ship to attack. Tenchi goes to Ayeka's ship and prepares to open the Light Hawk Wings. These are powerful shields that the ship can generate and can also be used as an offensive weapon if necessary. The Light Hawk Wings open and deflect the blasts coming from the Souja. Kagato is impressed and begins charging his weapons for a stronger blast. Tenchi fully extends the Light Hawk Wings and begins preparation for return fire. Tenchi and Kagato fire at the same time but the Souja's energy is too strong. Ayeka's ship is torn apart. Ayeka scans space looking for Tenchi but she can find no trace of him.
When Ryoko sees this she becomes so enraged that she breaks free from her prison and materializes into space to look for Tenchi. She finds a bloody cloth that was Tenchi headband. She swears that she will make Kagato pay for steeling the one that is most precious to her. She yells her fury at Kagato.