The episode starts with a flashback of Gintoki meeting his teacher on a battlefield, he throws Gintoki his sword. He then asks him to follow him if he wants to learn to use it.
Around half the episode was like this, I’m not complaining though…
Gintoki hits Jiraia away and frees and catches Tsukuyo. After some words telling her that she isn’t alone he puts her down to the side, yet Jiraia wouldn’t be finished that easily. They confront each other, Gintoki briefly lectures him, and Jiraia sets up his web.
Gintoki confronts him on his actions as a teacher striking fear into Jiraia. Jiraia attacks, Gintoki blocks all the attacks and makes a run for the door. Jiraia leaps towards him but this was Gintoki’s plan to confine his movement. Jiraia attacks with a kunai, Gintoki ties the wire around his arm and hits him repetitively with his bokuto remembering his teacher’s words of how a sword is meant for protecting your soul. He breaks Jiraia’s arm and leg. But Jiraia strikes back by landing a kunai on Gintoki’s arm and leg as well.
Gintoki confronts him about being unable to bear his student’s weight remembering his own teacher at the same time, ending with them both headbutting each other, and Jiraia falling. Gintoki turns around but Jiraia has stood up and has a kunai raised towards Gintoki’s neck. Jiraia’s neck then sprays blood and standing behind him stands Tsukuyo.
Zanzo arrives and talks of Jiraia’s past of being a noblemen skilled in ninjutsu, the people having an uprising and only him and his younger sister surviving from his family. He then had to work for them so that he and his sister could survive, becoming a monster in the process for her sake. Unable to see her brother tormented like this she threw herself off a cliff.
He then met and trained Tsukuyo to protect her from losing everything like he had. Jiraia reflects upon his actions and Tsukuyo lends him her shoulder so he can walk out and see the moon. Jiraia looks upon the moon and Tsukuyo seeing his sister in her.
As organised by Hinowa, Gintoki is dragged off to drink with Tsukuyo, so it should be the epilogue to this arc.