Episode Title: "Kyogen" - Falsehood
Manga Correspondance: xxxHOLiC Chapters 2 - 4.5
First Aired: April 13, 2006

A woman strolls into the house, having been compelled to enter. The woman, after being informed that the house is a shop where wishes are granted, says that her pinky has been stiff. Yuko asks about any bad habits she might have, but the woman denies having any. As Watanuki notices black smoke swirling from the woman's finger, Yuko gives the woman a ring. The woman identifies the ring as a possible remedy and thanks Yuko. "Think carefully about what a little finger represents," Yuko says as the woman leaves.

At school, Watanuki is cheerily greeted by Kunogi Himawari, who compliments him on his performance in the gym soccer game. Watanuki becomes aggravated when she brings up the other team's goalie, Shizuka Doumeki, who played well against him. As Watanuki declares that Doumeki's performance was a fluke, Doumeki appears and nonchalantly ruins Watanuki's excuse (and by the looks of it, life).

After Himawari wishes him luck on his part-time job, Watanuki radiates jolliness and skips up the road to work. Inside, Yuko practices the art of countenance-reading and states that Watanuki's face exudes bad luck. He expresses his apprehension, since he was complimented by the girl he likes. He then recognizes that perhaps Doumeki is the cause of this bad luck. Yuko refutes the love of Himawari and suggests that Doumeki could be more attuned with him. As the fortune-telling comes to an end, the woman with the finger problem re-enters the house.

The woman's habits remain unchanged and her finger begins to billow smoke after she responds to Yuko's questions. Smoke pours out increasingly with each answer, and Yuko informs the woman that if she does not figure out and correct her bad habit soon it will be too late. After the woman leaves to "meet her boyfriend," Yuko tells Watanuki that the smoke is the cause of the woman's discomfort. Watanuki responds in urgency and leaves the house to find the woman.

Watanuki finds the woman leaving a building. Two ladies talk about the woman as she walks away, saying that she lies about her age, work and about having a boyfriend. Watanuki recognizes lying as the woman's bad habit and chases after her. Down the road, the woman lies while giving a survey and while talking to an old acquaintance. Smoke consumes her body and she begins to feel faint. After she removes the ring, smoke pours out with immense thickness. The woman is immobilized in the middle of a road and is hit by a truck.

Back at the house, Watanuki begs to know if Yuko knew what would happen to the woman. She speaks philosophically about destiny and the universe to a perplexed Watanuki.