Tenchi and the girls return to the onsen that they wrecked the day Mihoshi fell from the sky, but instead of relaxing, the men work to fix the damages while the girls cook and clean. However, everyone begins to notice a mysterious, ghostly woman appearing nearby, and though hesitant, Sasami seems to want to tell her sister Ayeka something important. While Katsuhito and Nobuyuki play the ghost up as an old superstition, could it be that she and Sasami are somehow connected?
Plot
Arriving at the Onsen that Ryoko once wrecked, the men are forced to do the repairs while the woman are forced to do cooking and laundry. Washu and Sasami are exempt from doing any work. While Sasami, Ryo-Ohki and Washu go on a stroll in the nearby forest, Sasami disappears. Meanwhile, the group back at the inn perform their assigned duties. While peeling potatoes, Ryoko and Ayeka see a lady in white. When Ayeka checks to see who the lady was, she runs into Sasami. Elsewhere, Nobuyuki and Katsuhito also see the lady believing it to be a ghost. Later, both Ayeka and Ryoko inform Tenchi and Mihoshi about the ghost. Katsuhito then chimes in and tells an old story called the "White Ghost". Believing it to be true, the Onsenkeeper reveals that it's a hoax. Relieved to find out the story was false, Tenchi tries to fix the electricity for the Onsen. As he checks the fusebox, he encounters the ghost and while he frantically escapes barges into the girl's bathing area. It's there that the ladies find out that Sasami's reflection is that of Tsunami.
With the disappearance of Sasami, the group split up and desperately try to find the missing Sasami. Ayeka manages to find Sasami by a nearby pond. Tenchi and the others are also there and watch the scene that plays out between Ayeka and Sasami. Sasami reveals to her sister that's she's not really her sister, but an incarnation of lady Tsunami. The two of them merged with one another after Sasami died amid Ryoko's attack on Jurai. Ayeka, however, accepts the truth gracefully. Soon Tenchi joins them, thanks to a little push from Washu and as they talk, a visage of Tsunami appears before them. She informs them that Sasami was afraid of Ayeka knowing the truth about her and then disappears. Lit lanterns then manifest in the trees around them and soon the group is joined by Nobuyuki and Katsuhito. They all then enjoy a small picnic with each other. After Ryoko's failed attempt to try and swoo Tenchi, she talks with Ayeka who informs her that when Sasami will look like Tsunami when she grows up. Tsunami appears again and confirms this, making the two women disconcerted.