Volume 3 is the third volume of Shigurui that includes chapters 11-15.
After discovering Iraku’s betrayal, Kogan organises sham initiation ceremony at Mount Akiba to punish Iraku.
Iraku informs Fujiki that Kogan has summoned his disciples. Anticipating an initiation ceremony as chosen successor to the Kogan-ryuu, Iraku asks Fujiki to refer to him as "young master" from now on. At Kontake temple (which was considered holy for the Kogan-ryuu and where Kogan himself discovered Nagare Boshi), all disciples stand in a guard of honour with Iraku in between and Kogan at the head. To Iraku’s excitement, Kogan announces he will unveil Nagare Boshi, but only after Iraku had sparred with Gonzaemon. Although in sparring duels between students of the same school it was customary to stop strikes before they landed, Gonzaemon struck the first blow deep into Iraku's shoulder, wounding him. As Iraku prostrates, Gonzaemon proceeds to strike directly into the centre of Iraku's vertebrae; causing Iraku tremendous pain. As Iraku lay incapacitated, Kogan orders Fujiki to come next, and for the first time in his life, Iraku sees Fujiki smiling.
Confused and frightened, Iraku assumes this was a test. Kogan goads Iraku to stand, and tempts him with knowledge of Nagare Boshi. With his ambition acting like morphine to deaden his pain, Iraku stands. Despite his injuries, and though both sides looked equal in martial prowess, one side was already gaining the advantage as Iraku struck the first blow to Fujuki's forehead. With Fujiki’s blood soon to reach his eyes, Iraku sees opportunity to strike again, but does not notice the strange shape Fujiki has used to change the grip of his sword (the same grip he had used against the Funaki assassin). Kogan also notices, his own 6th finger more pronounced than usual. The tip of Fujuki’s wooden sword whispers across the tip of Iraku’s chin, and shakes his brain with terrifying force. Ironically, the blinding speed which not even the genius of Iraku could avoid, had been caused by the very two fingers he had broken 2 years earlier. The remaining disciples watch in amazement at this new and unseen technique.
As Iraku lies defeated, Fujiki repeatedly pummels Iraku face to a pulp with his fists; until Kogan orders Fujiki to cease. Later at the dojo, a gagged and tied up Iku observes Okitsu Sanjurro, a Kogan-ryuu disciple, administer a chemical into Iraku’s mouth, who was hung naked and upside down. He assures Iku it was simply medicine. A second Kogan-ryuu disciple, Maruko Hikobee, wryly taunts Iku, while a third, Yamazaki Korouemon, prepares heated tongs. Yamazaki presents them to Iku, and commands her to administer a final punishment by castrating Iraku and burning the root of evil which had led to her current predicament. As she resists, Yamazaki warns her she would be killed if she continued to disobey. With her back turned against the three, Iku reluctantly places the tong apparently between Iraku’s legs. As steam rises into the air and burning human fat drips onto Iraku’s face, the disciples watch with sadistic enjoyment, unaware Iku had actually driven the hot iron tong onto her breast, protecting Iraku and urging him to run. Dazed and confused, Iraku stumbles out of dojo, his eyes swelling to their limit due the drugs he swallowed. Appearing before him was a fourth Kogan-ryuu disciple, assistant Kogan-ryuu master Munakata Shinpachirou, who offers to Iraku what appears to be a steel sword. Tethering between dreams and reality, Iraku is not aware it was a sword made out of bamboo. Kogan appears and unsheathes his sword while his disciples blindfold themselves with the exception of Gonzaemon, already a master Kogan-ryuu and licenced to observe Nagare Boshi.
As Kogan stands in the Nagare Boshi stance, he begins to recall 1595, at the Dousankashi, Yagyuu estate. Kogan, during another year of training, is duelling Yagyuu Munenori, the man would later serve as sword instructor to the House of Shogun. Yagyuu, though a master in the art of the esteemed House of Yagyuu, knew Kogan’s skill outmatched his own. Fearing for his life, Yagyuu forfeited the match as Kogan stood in Nagare Boshi, though Kogan declared it a draw to save Yagyuu face and protect Kogan’s own ambitions. Later, Yagyuu informs Kogan he would be recommended to the House of Tokugawa but advised Kogan to hide his extra finger at the interview. In that same year, in an estate under the Castle Edo, Kogan is interviewed by Masazumi, son of Tokugawa Ieyasu’s ally Honda Masanobu. Though Masazumi was young, the differences in station between the two men were clear. When Masazumi queries why a prostrating Kogan would hide his extra finger, Kogan responds he did not want to disturb him. A greatly offended Masazumi explains that the retired Regent of Japan also possessed an extra finger (a thumb). Kogan’s dreams were shattered, and Yagyuu Munenori eventually became the sword instructor to the House of Shogun. Back in the present, Kogan rages madly at Yagyuu’s deceit while Iku urges Iraku to run.
Below Kakegawa Castle, by the estate of Iwamoto Kogan. Mie and an old male servant, Mosuke, overlook Mount Akiba. Mie is excited at Iraku succession, while the old servant is surprised that Mie has finally smiled, given the hardships her life has endured. When Mie was 7, her father had slashed a sparrows nest she had christened in twain. At 11, when Kogan discovers his wife had hung herself in a cell, his only words were “fool”. On that humiliating day, the only one man who refused to follow orders, and protected Mir's pride was Iraku. He was a not a puppet, but to Mie he was true man with warm blood in his veins. Meanwhile, Iraku is still unsure if he was participating in a training session, and recalls the countless women he had seduced using his striking eyes. Iku watches powerlessly as Kogan slashes them both. As Iku tends to Iraku, the genius swordsman may have been at his end or had just been reborn. Iraku’s “initiation” had ended. Walking together down the summit of Mount Akiba, Gonzaemon tells Fujiki he would be appointed as successor, but is alarmed that Fujiki possessed the face of a demon. Gonzaemon reassures himself that this was result of falling shadows in twilight. Meanwhile at the base of the summit, Mie stares onwards eagerly awaiting the return of Iraku. On this night, three monsters were born.