When Greg slew the Archbishop turned demon, he discovered his yellow form encased in the center of a massive statue's necklace... a statue of an angel. He regained his tranquility and peace of mind as well as the darks. With the yellow essence within him... he felt the next piece of his essence and warped there. He found himself in ancient Japan where legends, spirits, and gods exist among the living. He entered a small village and to his surprise he wasn't branded a monster.. but as a good spirit. For the first time... he has found peace.

However the peace is broken by rampant demons and spirits, as well as the vile D-Creeps. However the D-Creeps add a layer to this conflict... one of the powerful spirits, a Kyuubi fox spirit and one of the most powerful fears for his home and land against these D-Creeps. Greg makes a pact and a deal with the spirit to ensure peace with the other spirits.

The Yellow form grants Greg incredible swiftness, balance, and agility. Greg can walk on a tight rope, balance on small rods, and walk on walls and water. Greg's twin edged Swallow Blade can strike with extreme speed and rapidity and can land dozens of strikes in a single rush. In this form Greg learns to jump on the very air under him, allowing him to double jump.