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Kagura-Momo Island, located in an unknown region beyond the continent of Arcadia, has never been reached by Arcadians due to the constant mist and treacherous sea conditions. While sailing back to the Wastopia, Onion and Starling are unexpectedly caught in a sea storm and end up on the mysterious Kagura-Momo Island. Before them lies a world completely different from Arcadia: a giant dormant volcano, eternally blooming cherry blossom trees, and dancing islanders.

Onion and Starling soon find themselves involved in a battle for supremacy.

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Kagura-Momo Island has two villages: Nichirin and Gekkyō. Every year, the two villages hold the "Divine Battle" to compete for "Sakura Wish," a legendary treasure bestowed upon Kagura-Momo Island by the gods. Whoever possesses Sakura Wish is said to receive Divine Grace. The winning village will enshrine Sakura Wish for the following year, symbolizing prosperity through divine blessing.

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Onion and Starling join the samurai of Nichirin Village to fight against the ninja of Gekkyō Village for Sakura Wish. However, a fire-breathing dragon descends from the sky and steals Sakura Wish. Onion tries to take it back, but the dragon flaps its wings and quickly flies away.

The villagers tell Onion that it was the Inferno Dragon, one of the three underlings of the Momo no Oni Ō - King of Monster, the current ruler of Kagura-Momo Island. The Momo no Oni Ō demands monthly tributes from both Nichirin and Gekkyō Villages and forces the villagers to sing and dance constantly, threatening punishment by his three underlings (Inferno Dragon, Mane Troll, and Lunar Terror Wolf) if they fail to comply.

Onion resolves to help the poor islander their only hope is to find the legendary Miyamoto Jin and reassemble the "Blade Samurai." Thus begins their quest.

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