Plot
A small group of children on Horai Island watch as a Kikyo look-alike develops in a green orb, then stand in front of the Cauldron of Resonance while it comes to life. Four scars, the mark of the Four War Gods (Ryuura, Juura, Kyoura and Goura), appear on all of the children's backs except for the youngest girl, Ai. Asagi, the oldest, tells Ai to leave the island while she still does not bear the mark. After Ai leaves, The Four War Gods find out that Ai has escaped and try to retrieve her, but InuYasha and the others defeat Goura and save Ai, who asks InuYasha to save the others on Horai Island. Later, InuYasha explains the myth of Horai Island, a place that appears once every fifty years. He remembers fifty years ago, when Kikyo took him to the island to meet the half-demon children. Suddenly, the Four War Gods appeared. Gora sucked some of Kikyo's blood (which was used to make Kikyo's doppelganger), and Ryuura marked InuYasha's back with the scar, saying that he would never be free from them once he has the scar on him. The gang decides to head to Horai Island to investigate.
The villagers panic upon seeing the island. In a small hut, Kikyo listens to a man's tale of Horai Island, then leaves, saying she will defeat the demons. The rest of the villagers rush to the shrine and start praying for divine protection when Kyoura appears, who proceeds to burn down the shrine and kill many of the villagers. Sesshomaru arrives and drives Kyoura off with his Dragon Strike. After the battle, he remembers back to his first encounter with Kyoura, when he was marked by the scar.
As InuYasha and company near the island, Juura appears and fires his Thunder Cannon at them, destroying their boat. Miroku and Sango fly away on Kirara, pursued by Juura, while InuYasha, Kagome and Ai escape to the beach, where they meet Ryuura. In the ensuing fight, Ryuura easily deflects InuYasha's Wind Scar with his Earth Dragon Gale, then calls upon his Dragon Lightning and nearly kills InuYasha, but Kagome stops him by firing a sacred arrow. Ryuura is forced to retreat, but not before he hurls some insults at InuYasha.
Ai leads the group to the village, where they find Asagi singing together with the other four children. When InuYasha reveals his plan to confront the Four War Gods, Asagi begs him to reconsider, saying they'll all be killed. The gang learns that Asagi is going to sacrifice herself to the Cauldron of Resonance, and she argues that her death will allow the others to live a little longer. They all follow Asagi to the Cauldron, where InuYasha attempts to destroy the Cauldron with no success. Suddenly, he and Asagi are pulled into the Cauldron as it closes. On the outside, the rest of the gang and the children try to open the doors, while on the inside, InuYasha feels his strength waning. Then, Lady Kanade, the priestess who fought the Four War Gods fifty years ago, appears and lends her strength to InuYasha, along with the War Gods' power spheres in a box, telling him to destroy it as soon as possible, and that it must never be opened. In return, she asks InuYasha to save the children, then gives her blessing to Asagi before she disappears. InuYasha destroys the door to the Cauldron with Adamant Barrage, accidentally breaking Kagome's bow in the process.
Just then, a Kikyo look-alike appears and takes the power spheres from InuYasha. He chases her to the War Gods, where she opens the box, releasing the spheres to their owners. While Kagome, Shippo and the children attempt to make a raft to escape, the Kikyo doppelganger attacks InuYasha. At the Cauldron of Resonance, Sesshomaru appears and finds Kyoura waiting for him. Sesshomaru easily defeats him with another Dragon Strike. Meanwhile, Miroku and Sango fly on Kirara to confront Juura and the resurrected Goura. Using his Wind Tunnel, Miroku redirects Goura's blasts so that it hits Juura; Sango finishes him off with Hiraikotsu.
Meanwhile, InuYasha battles with the Kikyo doppelganger and is about to lose when the true Kikyo appears and defeats the impostor, then leaves her bow behind. InuYasha finds Ryuura attacking Kagome and the children, and kills him with his Wind Scar. With only Goura remaining, Miroku spears Gora's head with his staff, greatly weakening it. With InuYasha's Backlash Wave, he kills the last War God.
However, the battle does not end here. All the power spheres combine to create one final War God. Kagome knows a combination of her sacred arrow and InuYasha's Backlash Wave can destroy it, but she cannot fight because her bow was broken. However, the fireflies (spirits of the previously sacrificed island residents) lead the children to Kikyo's bow, and they bring it to Kagome. Finally, Kagome's arrow purifies the War Gods' attack and, with the fireflies' blessing, InuYasha unleashes his Backlash Wave with his Adamant Barrage, which killed them. As the gang and the children leave the island, the island vanishs in to the broken time line and disappears out of sight.
As the credits roll, it is indicated that the children spend some time with the gang at Kaede's village before departing as a group of six to face the world by themselves.
Read more about this topic: Inu Yasha The Movie: Fire On The Mystic Island
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