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Zatoichi, the famed blind swordsman, returns to his home village for the first time in many years. He is befriended by Omiyo, who had the same wet-nurse as Zatoichi. He also encounters a boyhood friend, Shinbei, who is now wealthy and appears not to remember Zatoichi. Shinbei seems to be interested in repaying the villagers' debts, but is, in reality, manipulating the ownership of a now valuable rock quarry. Zatoichi learns of the subterfuge and confronts his old friend, who has a score of yakuza swordsmen backing his play.
