

Zumichito has invented a revolutionary smoke machine - the Holosmoke. The Principal sees it as a new source of revenue for the school. When night falls, the Principal and Zumichito discover two undercover ninjas in the school and chase after them. The next morning the Holosmoke test run turns into a fiasco. The hologram image of a terrifying monster appears in Zumichito's place, creating wide spread panic amongst the students. Who could have sabotaged the Holosmoke? And who could have placed a love poem on Okuni's chair? Mystery... mystery...
Bakufu, the famous Ninja master, literally drops out of sky (hence the hole in the school's roof) and offers to teach at Shuriken School. The Principal doesn't dare refuse, but Bakufu's fee is exorbitant.
As the School prepares to celebrate the anniversary of the town's foundation, a mysterious Ninja from Katana School makes off with Tokiro's (the city's father) famous flip-flops. According to tradition, Shuriken presents these flip-flops to the public during the commemorative parade. If Shuriken School cannot produce them, the school's entire assets will be handed over to Katana School!