This Book focuses on Kiso no Yoshinaka's disastrous occupation of the capital, which occurs during a two-year drought and famine. Go-Shirakawa comes back to power in the capital. The Taira are initially expelled from Kyushu, but gain power as Yoshinaka falls out of favor, and they defeat Yoshinaka's forces at the battles of Muroyama and Mizushimas. Division in the Minamoto becomes apparent with the juxtaposition of the country bumpkin Kiso no Yoshinaka and the aristocrat Minamoto no Yoritomo, whom Go-Shirakawa appoints as shogun. The chapter concludes with Kiso no Yoshinaka attacking Go-Shirakawa's forces at Hōjūji, the cloistered emperor's residence. Yoshinaka wins this battle and gains control over the capital, but Yoritomo has sent his brothers towards the city in order to confront Yoshinaka.
Go-Shirakawa goes to Mt. Hiei and then returns to the capital, bringing many of his followers with him. Future Emperor Go-Toba is designated Crown Prince. The Minamoto get formal positions within the government, while the Taira lose their positions.
Koreyoshi, with ancestry claimed to be from a serpent-god, drives the Taira out of Dazaifu.
The Taira win at the Battle of Muroyama and Battle of Mizushima. Is it too late however? A story about the interesting warrior Seno-o is told here.
At the Battle of Houjuuji, Kiso no Yoshinaka and Go-Shirakawa battle after Yoshinaka's men have been causing problems in the capital. Yoshinaka ends up victorious.