Zatoichi confronts equally skilled assasin on the beach and kills him in one swipe though his shoulder gets badly cut. Village celebrates with festival of dance and song after Zatoichi has wiped out the evil gangs which threatened the village. At end Zatoichi is ambushed by ninja's but he defeats them and is confronted by the last boss member who was actually the barman from the village. Zatoichi reveals that he is not blind but instead lives as a blind man as it has trained his other senses. Zatoichi slices up gang leader and then confronts his grandfather who is the true boss. Zatoichi does not kill him but slices his sword across his eyes rendering him blind forever. Zatoichi leaves.