Takashi Natsume and his spirit companion Madara, nicknamed Nyanko, continue returning the names of spirits from the Book of Friends given by his late grandmother Reiko Natsume.

On his way back from school one day, Takashi encounters a lurking spirit named Monmonbou, who recalls memories of Takashis grandmother after hearing his name. Takashis natural curiosity leads him to explore a mysterious town where his grandmother used to live. Befriending her old acquaintance Yorie Tsumura and Yories son Mukuo, Takashi unveils more of his grandmothers past.

In the meantime, Nyanko detours for food and stumbles upon a suspicious Spirit Seed, which miraculously sprouts into a fruit tree overnight. Giving in to temptation, Nyanko consumes the fruit, splitting him into three. Seeking a solution to Nyankos predicament, Takashi and his friends lend a hand, unexpectedly uncovering more secrets the town holds in the process.

[Written by MAL Rewrite]