Plot
The film opens with InuYasha and his companions succeeding in killing Naraku. The group subsequently splits, leaving InuYasha, Kagome, and Shippo searching for the remainder of the Shikon Jewel shards without Miroku or Sango.
Kagura and Kanna, the two surviving incarnations of Naraku, are restless now that Naraku is dead. They find a mirror in a shrine and awaken Kaguya, Princess of the Heavens. In exchange for freeing her, Kaguya promises to grant Kagura her eternal freedom. Kagura and Kanna set out to recover five items that will free Kaguya from her mirror, leading them to cross paths once again with InuYasha and his friends. Kaguya, desiring to stop time, kidnaps Kagome, who is able to put up a barrier against her spells. The remainder of the group reunite in Kaguya's realm of mirrors in order to retrieve Kagome. Kaguya, intending to enslave InuYasha, attempts to transform him in to a full-fledged demon. The spell is broken by Kagome, who kisses InuYasha for the first time in order to stop the transformation.
Naraku reappears, revealing that he had purposely faked his death to absorb Kaguya. Naraku, unable to fight on equal terms, then escapes with Kohaku, Kagura, and Kanna. Kagome then combines her power with that of Miroku as she launches a piece of his staff in the form of an arrow and destroys Kaguya's mirror. InuYasha then destroys Kaguya's physical form. Kaguya appears in a gas-like form and tries to take control of Kagome's body but ends up being sucked into Miroku's wind tunnel. Everyone escapes back to the normal world through Kaguya's mirror as her palace collapses.
Read more about this topic: Inu Yasha The Movie: The Castle Beyond The Looking Glass
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