The story starts where Yusuke Urameshi's spirit watches from the sky at his body which is dead being observed by a bunch of people who are trying to make sense of what is happening. While Yusuke is wondering why he is floating while his body is below him, the medics arrive and announces the injured little kid they found will be okay with minor scrapes, but the other kid is dead. Yusuke doesn't believe the corpse is his, and tries to attack the medic, only for his punch to go through the medic's body. Taking time to think Yusuke thinks back.
Three hours earlier, Yusuke was at Sarayashiki Junior High taking a smoke outside being paged on the intercom to report to Principal Takenaka's office, when Keiko Yukimura arrives. Keiko is enraged that Yusuke is smoking and playing hooky and points out that not only is Mr. Takenaka looking for him, but she is going to get in a lot of trouble since she is the class representative. Yusuke agrees to go, but while Keiko mentions on how she put up with him for years, Yusuke takes the opportunity to pull up Keiko's skirt to look at her panties, getting Yusuke slapped for this perverted act. After Yusuke leaves Keiko notices her friends who are scared and mention several rumors about Yusuke including that punks are either trying to hunt him or recruit them and Yusuke has several underlings under his belt which Keiko dismisses as nonsense since he is socially awkward and has few friends, though she admits these false rumors are the reason why he has a bad reputation. Yusuke comes across some students with one stating that he got out of trouble from a punk and got his wallet by pretending he was Yusuke Urameshi's cousin and Yusuke attacks threatening him unless he pays him 500 yen for using his name. Afterwards Mr. Iwamoto comes by and seeing a cigarette on the ground, believes it to be Yusuke's and openly admits he wouldn't think twice of expelling Yusuke.
Before he can light another cigarette, Mr. Takenaka smacks Yusuke from behind and after chewing him out decides to take Yusuke to his office, only for Yusuke to escape and head home. His mother Atsuko Urameshi throws him out since he won't hear her lecture about how hard it is to go through school since it isn't free. While walking across the street he finds he can't go anywhere since nobody will let him in their shops since the bad things kids do are always blamed on him. He is then confronted by his school rival Kazuma Kuwabara and his gang, where Yusuke vents his frustration by knocking Kuwabara out. While Kuwabara's friends wish he stopped picking fights with Yusuke, Kuwabara refuses to give up. It was after that Yusuke met the kid. After playing with the kid for a while, Yusuke asks he tries to play somewhere else. It as he is trying to cross the street, that Yusuke notices and saves the kid before being run over.