Episode Title:
The Truth Behind the Nightmare: Battle in the Forest of Sorrow.
Episode Description:
Garamaru, the brother of the moth demon Gatenmaru, appears to seek revenge on InuYasha by encasing all his friends within cocoons. This would transform them into moth demons as they are plagued by their worst fears. Meanwhile, InuYasha is to prevent Garamaru from devouring the souls of his friends. He is able to reach into the dreams of his friends, urging them to overcomes their anxieties.
