Asuma and Kurenai, Fire and Illusion

Summary
Mirai speaks to the participants of the Quarrel Festival through her Genjutsu: Ghost Fire, urging them to stop fighting. She worries that the participants won't believe in the deity she's just invented, but the participants immediately recognise the Ghost Fire as "Cattog", the deity rumoured to mediate between the town's cat deity and dog deity. As Cattog, she begins making arguments in favour of peace, but is interrupted by Guy, who charges at the Ghost Fire and attacks it, believing it to be a monster. Guy dispels the Ghost Fire as he passes through it and crashes into the wall that separates the cat and dog hot springs, destroying it and combining the two. Mirai panics over this potential act of vandalism, but the townspeople instead interpret this as the will of Cattog that they unify at long last.

Mirai is disappointed that her Ghost Fire failed to fulfil its purpose, but Kakashi corrects her: amongst the joyful cat and dog worshippers are Kiba and Tamaki, now reconciled. They thank her for bringing them back together, having recognised the Ghost Fire as Mirai's doing. As the two head off to enjoy the new combined hot spring, Mirai marvels at how opposites can be brought together. She and Kakashi then seek out Guy, who is dazed from his ordeal. The townspeople believe he is a messenger of Cattog, and vow to make a statue in his honour; Mirai and Kakashi take him away before that can happen. Because of how many people are attending the Quarrel Festival, none of the town's inns have rooms available, forcing Mirai, Kakashi, and Guy to camp out for the night. As Kakashi and Guy sleep, Mirai wonders about the cult that used to be active in the Land of Hot Water.

Trivia

 * Ordinarily, the kanji for this chapter's title would be read as "Honō to Genjutsu". but the furigana for the title is instead, a reference to Mirai's parents.