Ryouko, the "demon" whom Tenchi frees from a nearby cave, explains to Tenchi that she really did not mean any harm when she attacked Tenchi. In fact, she was just playing with him. In any case, she makes herself at home in Tenchi's house, much to Tenchi's dislike. Ryouko also displays an unusual interest in the gems in Tenchi's sword which she claims to hold her power. She asks Tenchi to give her back the gems, but in the end Tenchi only gives her one of the gems since he still does not trust her completely.
The scene then shifts to a spaceship nearing Earth. We find that the occupants have just been awakened from suspended animation. We find the occupants of this ship to be Princess Aeka and Princess Sasami of Jurai. Aeka was on a journey to find half-brother Yousho, the First Crown Prince of Jurai, whom she was supposed to marry (such marriages were allowed on Jurai). Yousho had left Jurai in pursuit of a space pirate named Ryouko who had attacked the imperial palace on Jurai, and Aeka, after waiting many years for his return, Aeka left Jurai with her sister Sasami to find him. Her ship, the Ryu-oh, awoke her from her suspended state when it discovered signs of Ryouko's presence on Earth. Just then the warrant for Ryouko's arrest had expired, but nothing would stop Aeka who saw this as an opportunity to make Ryouko pay for taking Yousho away from her. Aeka's ship then teleports Tenchi's home containing Ryouko--as well as Tenchi and his family--into her ship. However, Ryouko escapes with Tenchi with the help of Sasami who let Tenchi go free so he could play with her, and, summoning her own pirate ship Ryo-ohki, attacks Aeka. Both ships become heavily damaged in the battle, and they crash on Earth next to the Misaki shrine. Thus Aeka and Sasami were stranded on Earth, and accepting Tenchi's offer, took residence at the Masaki residence, which was deposited in close proximity to the Shrine.
Aeka is depressed that she has no way to return to her home planet of Jurai, and she is further disturbed when Tenchi tells her that Yousho was an ancestor of his who had lived a long time ago and was now dead. Aeka keeps the sword Tenchi had in his possession since it once belonged to Yousho. The plot thickens as now Aeka and Sasami join Ryouko in the Tenchi home.