Zatoichi makes friends with a dangerous chess player, while fending off angry yakuza and bloodthirsty relatives out for revenge, and trying to save a sick child. Meanwhile, his luck with dice is turning.
In a mountainous region of Japan, Lord Arakawa kidnaps the men of nearby villages to use as slave labor, producing gunpowder from his sulfur pits. A band of young boys decide to rescue their enslaved fathers on their own.
Jewel thieves become interested in an invisibility formula invented by Professor Nakazato and want to use his invention to acquire a diamond necklace called the "Tears of Amour."