When Egrets Flap Their Wings

is episode 167 of the original Naruto anime.

Synopsis
Naruto rises from the water and punches Hōki, then tells Toki that he has seen Sagi. Naruto then fights against and defeats Hōki. Chishima turns out to have survived Hōki's attack. Toki apologizes to her subjects for deceiving them, but asks them to allow her to remain ruler in order to restore the Land of Birds. After the group leaves, Neji tells Naruto that the first Cursed Warrior they encountered was actually a real ghost, much to his horror.