A long time ago, aproximately 400 years, in a time called Sengoku Jidai Era (age of the warring states), youkai (demons) roamed and ravaged the land in search of an item called Shikon no Tama (the jewel of four souls).
The souls are actually spirits and what are supposed to be what humans are of. The spirits are Arami Tama (courage), Nikimi Tama (friendship), Fushigi Tama (wisdom), and Sakimi Tama (love). The spirits fused into what is now the Shikon no Tama. A Miko (female pristess) named Kikyou was guardian of the jewel and kept it safe from the evil of the youkai's spirits. Untill one day, a very manipulative youkai named Naraku tricked Kikyou into thinking that her love inuyasha, a hanyou (half human, half youkai), was going to use the sacred jewel to turn himself into a full youkai instead of what he promised Kikyou, a full human. Kikyou knew she had to stop him and shot him with a magic arrow as he fled the village he destroyed to get the jewel that pinned him to a tree and put him in an eternal slumber. Kikyou later died due to wounds Inuyasha gave her when Naraku tricked Inuyasha into thinking that Kikyou hated him. When she was cremated she took the Shikon no Tama with her to the next world and the rencarnation of the pristess Kikyou, Kagome ended up with it.
400 years later, Kagome, was pulled down a well by a centepede youkai in the shrine in the backyard of her grandparents house and entered the Sengoku Jidai Era (which there was 50 years in the future). She used her unknown pristess powers to defeat it with a purple light that came from her hand. When she emerged from the well, she walked through the forest where her grandparent's house used to be and found inuyasha still pinned to the tree. The villagers found her playing with Inuyasha's ears and accuse her of being a fox spirit and shot at her. Then, an old woman named Lady Kaede steps in and demands they cease fire and that she resembles her dead sister Kikyou.
Then the cetepede youkai appears again and demands the Shikon no Tama. Inuyasha then awakes and is set free by Kagome when she removes the arrow. At first Inuyasha thinks it is Kikyou, then Kagome protests and says she has never heard of this Kikyou. Inuyasha then destroys the youkai using his attack, Sankon Tessou (Soul Shattering Iron Claw, or Iron Rever Soul Stealer). After, Inuyasha demands the Shikon no Tama from Kagome and claims that if she doesn't give it to him he will kill her. He begin's to attack her demanding the Shikon no Tama, but misses on perpose. Then Lady Kaede puts a spell on a necklace and places it around Kagomes neck and tells her to say "sit". The spell cast on the necklace allows Kagome to subdue Inuyasha with that command and can only be taken off by her. So she does this and Inuyasha has no choice but to listen to her.
They all head back to the village and Lady Kaede explains everything. The next morning Kagome heads back to the well to see if she can go home when she is kidnapped by slaves of a crow youkai. Inuyasha comes to her resque and saves her, but the crow youkai takes the jewel that was thrown outside by Kagome in order to save herself from the youkai and flys away , with a child it decides to eat, only to be tailed by Inuyasha and Kagome who is unsuccessfully trying to hit the youkai with an arrow. Inuyasha then attacks the youkai with his Sankon Tessou. Spliting the youkai into pieces and having the boy plummet into the river below. But since it has the jewel it is much stronger and regenerates itself as Kagome resques the boy.
The boy has with him the youkai's leg and Kagome then takes it, ties it to an arrow, and shoots. It hits the youkai killing it, but also shattering the Shikon no Tama. As Inuyasha and Kagome approach where the jewel shattered they only find fragments and so the quest begins.
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