The time is in the middle of the Heian period -- famine and epidemics abound, the capital lies completely in ruins. However especially when in those kind of situation, the warriors and the diviners continue their strife of ugly disputes based on a scandalous dispute. Seeing that the suffering people is ignored by the Imperial Court, an archery marksman by the name of Minamoto No Raikou undertakes the quest to search for the legendary Magatama to obtain the unfathomable supernatural power needed to bring peace to the capital.

However, Yorimitsu succumbed to the epidemic. The Minamoto family's youngest daughter, Hikaru disguises herself as her brother and decided to undertake the task to go forth and look for the Magatama. With her brother's sworn brother, Watanabe No Tsuna, acting as her faithful subordinate, they encountered various people. With each encounter, Hikaru's companions increases.

While dragged into various encounters with the beautiful young master musician, Manzairaku and the mysterious diviner with dealings in the Imperial Court, Abe Seimei, our heroes seemed to be made fun of by fates.

Before long, Hikaru disguised as a man harbours in her heart a secret love for Manzairaku while trying to avoid being conscripted into the huge battle engulfing the Capital...

Note: Otogizoushi is the name for a fairy tale storybook that is a collection of more than 300 tales from the Muromachi era (1333-1576). The authors of these tales are anonymous but the tales as a whole touch upon numerous subjects and themes.

Otogizoushi has two arcs in two different time periods. The first arc is the Heian arc as mentioned in the synopsis. The second arc is the modern Tokyo arc set in the present. Otogizoushi has also been announced as a 26 episodes series but the series regularly ran for 24 episodes. The last two episodes, the first focusing on Urabe and the second on Mansairaku are released at an irregular schedule after the 24 episodes have ended.