Armies are marching toward higuchi. Xena buries her regualar outfit and armor and heads onto the battle-ground, with Gabrielle leading a contingent elsewhere, still looking for Xena. Xena is attacked. Xena takes out many men, but eventually succumbs to a barrage of arrows. She is beheaded by a samurai, becoming a ghost to kill Yodoshi. She arrives at the tea house and is reunited with Akemi.
Gabriell finds Xena near the tea house and is understandably shaken to learn her friend is dead. Harukata tells Gabrielle she can get Xena back if she sprinkles Xena's ashes into the fountain of strength on Mt. Fuji before sunset on the 2nd day. Gabrielle sets out with a gift from Akemi-an elaborate dragon tatto that Akemi says will protect her. Gabrielle arrives at the samurai, Morimoto's camp and fights him for Xena's body. She wins but denies his request to sever his head so he'll die with honor. She does what Harukata told her she must.
Xena summons Yodoshi to the tea house, but their plan to kill him fails because he's been drinking fom the fountain of strength. Harukata tells she must drink from the fountain of strength and kill him with the sacred katana.On Mt. Fuji, Gabrielle delivers the sacred water to Xena with a kiss, giving her the power to fight and defeat Yodoshi in a spectacular areal battle, releasing the souls. Gabrielle almost spills the ashes, but finally manages to reach the fountain. However Morimoto is in the way. Gabrielle slays him with the chakram and is about to drop the ashes when she is stopped by Xena. Akemi told her that the souls cannot be released into a state of grace unless they are avenged, meaning Xena must stay dead. Gabrielle reluctantly grants her friend's request and sails away from Japan, with Xena forever in her heart. She heads back by Boat with Xena's ashes, ready for more solo adventures.