Kenshiro is trying to break down the gate, but his attacks fail to do so. Sara then appears and Ken asks her if Bista is alright. She sees that even now he cares for others, but she tells him that he doesn't need to fight any longer, she will instead. As well as her healing arts, her father also taught her something else: Hakkai no Jitsu. She takes Ken's hand and then her own palms pulsate with a white glow.
The gate begins to shake and then Kenshiro shatters it completely. Ken can now get out but before he does he sees Sara drop to the ground. She seems OK though and tells him not to worry about her, he needs to go and confront Seiji and Tobi.
Meanwhile some villagers are trying to treat Tobi's wounds, but he is losing a lot of blood. Kenshiro enters and Tobi says that his dream is over, and that Bista and Sara are now in Seiji's clutches. He wants to be with them and doesn't want to die now.
Kenshiro takes his hand, but seconds later Tobi succumbs to his injuries and dies. Meanwhile, at the palace...
...Seiji is busy trashing one of his father's rooms when Ches runs in. He says that the villagers have stopped rebelling now that Doha is inside the palace, and that the war is over. And because of that, he asks if Seiji will spare his life and undo the pressure point he hit yesterday. Seiji agrees and after Ches removes most of his clothing, Seiji hits the spot on the back and reverses the effect.
Ches is as happy as can be and after thanking his master he goes to leave. However before he can open the door it is broken and a finger hits another pressure point on his forehead: Kenshiro has arrived! Ches runs back as Ken breaks down the entire door.
Ches points out that this man killed Sanga, but Seiji just warns his subordinate that Kenshiro just pressed the Gakuchu pressure point on his head. He tells Ches to kill Kenshiro now, if he does it, he will save his life. However Ches doesn't have the courage to fight Ken and begs to be spared.
His pleas are ignored and after rolling around on the floor uncontrollably, his head explodes. Seiji just smiles and says that they cannot fight here due to the room being too small. He instead leads Kenshiro outside...
...to a large arena. He says that they seem to uses a similar style, but Kenshiro says that his style if Hokuto Shinken and that he has come to make Seiji abide by the rules of his Hokumon no Ken style. It was never meant to be used in the outside world. However Seiji has no interest in this, the only reason he learnt the style in the first place was to become strong.
Kenshiro rips apart his jacket apart just as Sara enters the arena. Kenshiro's battle with Seiji has begun. The two exchange some quick blows, one of which results in part of Seiji's armor being damaged.
Seiji smashes Ken into a pillar, but it doesn't effect him. Ken says that Seiji's punches are strong. Seiji tells them it is because all of his ambition is in his fists. The battle continues, but Ken notices Seiji's eyes and believes that ambition is not the only thing he cares about -he seems to have sorrow in him, too.
The two clash, but Seiji doesn't understand why he isn't able to kill Kenshiro like he does with his other opponents. Ken says that he hasn't noticed the fact that his attacks are making him slower, which means he can't defend as well. The point is proven when Ken kicks and then punches Seiji with such force his armor breaks and he can't do anything about it. Seiji gets back up and believes Ken is mocking his style, so he goes to attack him again. Ken avoids his strikes and then hits him in the chest...
...and then follows it up with a Hokuto Hyakuretsu Ken. As Seiji falls he wonders how he could have been beaten. Kenshiro tells him that having ambition does not raise your skill level. But a man who carries sorrow within him can become more powerful. Ken says that he has once again lost a friend: Tobi. Does he understand now?
Sara runs across and begs Ken to stop and not kill him. Seiji says that he doesn't need her pity, but she says it isn't pity. He says that he has brought shame to her, but she explains that she is the girl he saved a long time a go and it was because of her that he has a scar on his neck. Seiji remember the day with the wild dog, but turns his attention to Kenshiro and tells him that if he is going to kill him, then he should do it now.
Yura then appears and also asks Ken not to kill Seiji. She reveals to everyone that she is Seiji's aunt, and that he was always a good boy in his youth. She explains that long a go, Sanga did love his son.
Seiji remembers a time when he was training with his father, and promised him that one day he would become even stronger than him. Sanga said he looked forward to that day. Later, Sanga dropped his son down a canyon, but it was all for a reason: it was a test for him. As he watched his son fall, Sanga said that if he wanted to surpass him, then he must climb back out and return.
Back in the present, Seiji suddenly strikes himself before anyone can stop him. He says that he has just stopped his own blood flow and that this is a peaceful way of killing yourself. He asks Ken if his father was strong and Ken tells him that he was. In fact, he was still stronger than Seiji.
Seiji understands and says that he looks forward to seeing his father again. He then finally passes away.
Later on, the water is available to the villagers and Sara tells everyone it is for them all. She also says that she isn't a God. Later on, a small grave has been made for Tobi and Sara tells the now healed Bista that his brother was very brave. He had to fight Sanga and Seiji in order to protect him. She passes him that picture which belonged to Tobi.
Sara asks if Kenshiro will stay here with them, but he refuses. Wherever he goes, chaos follows, and he doesn't want to put them in danger.
Kenshiro starts to walk away from Last Land. As Sara watches him depart, Bista says that his brother is watching him from heaven. Kenshiro continues to walk.
"Ryu...One day we will meet again. And when we do, it will be a true battle to become the master of Hokuto Shinken. Until then my journey as the successor to Hokuto Shinken will continue..."