The unlucky Keitaro is given a break when his grandmother asks him to be the manager of Hinata Inn. Keitaro accepts but little does he know that since he's last been there, the inn's become a girls' dormitory! None of the tenants are all too happy about a male living with them until they begin to believe that he's a student of Tokyo University.

The master of the sword, Motoko, returns from a training retreat only to find that Keitaro has been named the manager of the inn. She's outraged and is completely against a male being the manager but becomes confused by weird feelings that consume her body. Could it be love?

Keitaro scores two tickets to Neverland and plans on asking Naru to go with him for the grand opening. However, a new face appears and his name is Sakata Kentaro. He's richer, better looking, and smoother than Keitaro. He also has tickets to Neverland. Things don't look so hot for Keitaro.

During meditation, Motoko enters a dreamworld where everyone is living in an RPG. Keitaro is a knight on a quest to save Naru from the Dragon King and the silliness of it all turns off Motoko. But as she continues to meditate further, she finds a lesson in the dream.

A mysterious woman appears in Hinata with her pet alligator. The duo are wreaking havoc all across town and Kentaro claims that it's actually a grown-up version of Kaolla. Is it?

The tenants of Hinata Inn are working part-time at a beach tea house and decide to perform a play to increase revenue. Keitaro is still incredibly glum about the whole Seta and Naru situation and it's pretty understandable.

Naru becomes possessed by an evil spirit and Motoko is the only one who can destroy it. Unfortunately, she doesn't know the technique to kill the spirit without killing the body and it's quite a predicament.

Seta has to leave on an excavation trip and asks if Sara can stay with the girls at the inn. Sara doesn't take too kindly to this and decides to run away while causing as much trouble as she can to everybody else.

A man who happens to look exactly like Keitaro when he wears glasses appears and is later found out to be from Kaolla's home country. He is here to get married to Kaolla but she decides she isn't quite ready yet, but tradition says she must.

Naru now wonders what she should do with her newfound knowledge and it seems like Keitaro is going to be returning home since his grandma has returned to reclaim the inn. To add more to the mess, it doesn't look like Keitaro's studies are going to be enough to help him into Tokyo University.

Keitaro decides whether or not to confess his love to Naru. Eventually he confesses, but Naru's reaction is not as he had hoped.

Keitaro and Naru are taking the second exams. Keitaro takes a look at the exam and has confidence that he can pass it. Then he starts daydreaming about how he and Naru will get married afterwards, then he wakes up and the examiner announces there are 5 minutes left. Keitaro runs away and applies for a job overseas, then ends up on a mysterious island after jumping into the ocean.