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?

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.

When Motoko runs out of clothes as they're all in the laundry, she is forced to wear a dress. Furthermore, her swordsmanship has been foiled by not only Tama-chan but also Keitaro. This leads her to doubt herself and things get worse when Mecha Tama-chan begins to create havoc.

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.

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.