Izumi encounters a vision of her dead father, then discovers the ghosts of her friends watching her. Two of her other friends visit her and discover Izumi and her dead friends have their eyes blackened out in photos. Izumi is wrought with guilt for abandoning her friends and becomes increasingly paranoid and unstable. As a teenager, Izumi went to the house with her friends but fled while her friends were killed by Kayako this was the event Toyama witnessed in the past. Toyama eventually dies, leaving behind a daughter named Izumi. Kayako appears, chasing Toyama away but killing Nakagawa and Igarashi. Toyama goes to burn the house down but hears a group of teenage girls upstairs. Upon researching the history of the house and the Saeki murders, Nakagawa and Igarashi contact a retired detective named Toyama, who is afraid of revisiting the case. Hirohashi's body is discovered, and Rika is haunted by the ghosts.

Detectives Nakagawa and Igarashi discover Katsuya and Kazumi's bodies in the attic, and later learn of Hitomi's disappearance and the death of a security guard at her workplace. Hirohashi finds Rika and contacts the police. She discovers Toshio, and witnesses Sachie being killed by Kayako's ghost, causing her to faint. Social worker Rika is sent by her boss Hirohashi to care for Sachie. Katsuya's sister Hitomi dies shortly after Kayako's spirit follows her to her office and then her apartment. Kazumi is quickly consumed by the curse, and Katsuya is emotionally affected by Takeo's personality before dying too. The latest owners of the house are the Tokunaga family, consisting of salaryman Katsuya, his wife Kazumi, and his ill mother Sachie. Whoever enters their house in Nerima, Tokyo, is eventually consumed by the curse, which spreads to the place they die in and in turn consumes anyone who comes in. The murders create a curse that revives the family as vengeful ghosts, with Kayako's ghost murdering Takeo. Several years prior to the main plot, Takeo Saeki murders his wife Kayako after discovering she is in love with another man, also killing the family cat, Mar, and his son, Toshio. Below, the events of the film are in chronological order however, the original film is presented in a nonlinear narrative.

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