Naruto and Sakura team up and challenge Kakashi to a survival challenge to show off their progress.

Naruto, Choji and Shikamaru attempt to capture and interrogate Sai, but Sai withdraws after insulting Naruto. Shortly afterward, Ino appears. Concerned that the demon fox could fall into Akatsuki hands, the village elders challenge Tsunade's plan to send Naruto out of the village without the still bedridden Kakashi. Tsunade promises to protect Konoha with her own life if Naruto is captured, but is still forced to compromise with Danzo by adding Sai to Team Kakashi. She also temporarily replaces Kakashi with ANBU member Yamato and warns him to keep an eye on Sai. Naruto and Sakura finally meet their new team members, and Naruto is immediately angered upon Sai's appearance.

A group of Allied Shinobi, including Omoi and Maki of the Sand, battle against several reanimated enemies. Maki recognizes one of them as Pakura, her former master who was a Sand Village hero.

Team 7 is finally reunited when Naruto, Sakura and Sasuke join forces.

All the Tailed Beasts are freed, and old friends Kakashi and Obito come face to face with each other. What will Obito's response be? Meanwhile, the Tailed Beasts and the Allied Shinobi Forces shift their focus onto their greatest foe, Madara Uchiha. Gaara is reunited with his former Tailed Beast, Shukaku. When Gaara asks Shukaku to lend his power to seal Madara, he refuses. Will their history of animosity prevent them from working together?

Sasuke has left with Orochimaru, but Naruto is not about to give up. Determined to bring Sasuke back, he returns to the village with Shikamaru and the others. Meanwhile, Yahiko appears in the village, calling himself “Pain" and seeking revenge for the Hidden Leaf’s betrayal.

Kaguya Otsutsuki suddenly emerges from Madara’s body. She is the mother of Hagoromo, the Sage of the Six Paths who entrusted his powers to Naruto and Sasuke. Kaguya’s power is immense and instantly sends Naruto and Sasuke to an alternate dimension. Naruto and Sasuke are the only ones who can seal away Kaguya, but they can’t find a jutsu that works against her!