Watanuki's life changes completely when he meets Yūko for the first time. Watanuki is given a job at Yūko's shop, paying off his debt. Mokona, Maru and Moro all make their first appearance in this episode.

Yūko decides to show Watanuki what a real Diviner can do. Watanuki learns more about Yūko's powers, while his past is explained. The important butterfly symbolism found throughout the series is also explained.

A teacher in Watanuki's school gets her hands into a dangerous item from Yūko's shop, the monkey's paw. The teacher's discovery eventually leads to her downfall and of the monkey's paw choking her.

Yūko decides to arrange a ghost stories meeting with Watanuki and his friends.

Watanuki and Doumeki meet a pair of twin sisters and even go to a date with them, but Watanuki can't shake the feeling there is something strange about the older one.

The situation involving the twin sisters start to get dangerous as one of them starts to bleed for apparently no reason.

Watanuki meets a beautiful woman and starts to see her every day hoping to soothe her loneliness, but somehow he starts to get sick and can't figure out the reason.

As Watanuki has more encounters with the mysterious woman, his condition worsens and Doumeki decides to intervene.

Due to an unfortunate incident, Doumeki's right eye is covered by a mysterious spider web. Watanuki, feeling guilty for his condition, takes a drastic measure to revert it.

Doumeki studies some occult books looking for a way to restore Watanuki's sight, until a strange creature appears and starts to devour its contents.

After learning that the Zashiki-Warashi disappeared while looking for his right eye's sight, Watanuki rushes to help her. Upon finding her, he also discovers the creature who possesses his stolen eye.

After learning that Kohane is being harassed by the public as many believe her powers are a fraud, Watanuki pays a visit to her.

Tired of seeing Kohane being harassed by the media and mistreated by her own mother, Watanuki takes her to the shop.