Kouga hunts Horrors at a local cemetery, losing one when he is wounded by a dagger from an unknown assailant. Running into a middle aged prostitute named Kotomi, who just beat up a man and hurting two younger girls for their money, Kouga runs off after he checks her for possession and finds her clean, just as Kotomi is quickly possessed by the Horror. The next day, after getting his injury tended to and negating the poison, Kouga learns from the Watchdogs that the weapon is a Dagger of Haja which only Makai Knights would use. Meanwhile, forming a pact with the Horror inside her, Kotomi regains her youth as she starts killing off men. Meanwhile, while looking for a job, Kaoru is saved by a couple of seedy guys by a mysterious young man, whose words put her not at ease. Kaoru shows up for the job of bartender before witnessing Kotomi killing up her employer, Kotomi chases Kaoru to the harbor as Kouga appears. By then, another dagger appears belonging to the man who saved Kaoru earlier, telling Kouga he is also a Makai Knight. Annoyed, Utoque attacks as Garo battles and slays the Horror. Kotomi asks for help as she dies, but Garo says it is impossible as she allowed the Horror to possess her in the first place. Soon after, Rei formally introduces himself, before confusing Kouga and Kaoru and taking taking his leave.
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