The Playhouse is first accessed after rescuing Kagu and another girl from demons. Raiden appears and guides Chibi and Kagu to the only entrance left in the Playhouse through Spirit Floors, the back door. Inside the playhouse, Kagu and Chibi find out that Kagu's parents are missing and told her to run, to which she scoffed at and continued on to investigate the area. As they discover that the head demons possessing the Playhouse are attracted to plays, four stagehands are exorcised of demonic possession and turn the stage to face the right way in order to lure out the demons. Through a side area, Inferno is acquired. After they are done, they proceed to free the trapped actors and visitors and return to the stage. The demons show themselves and a battle ensues with Sen, a crane-like demon, who posesses a massive doll on the stage for battle. After defeating Sen, its turtle-like partner Ryo appears, and it posesses Renjishi again. After both are defeated, they rematerialize and enter Renjishi, combining their powers. This almost proves to be too much for Chibi and Kagu, and as Kagu begins to give up, Chibi risks his life by taking on the ensuing blasts from Renjishi to defend Kagu. This moves Kagu, and she decides to use her miko powers fully, putting on the robes and teaming up with Chibi to defeat Sen and Ryo.
- After Renjishi's defeat, some of the Canine Warriors appear with an audience, and Princess Fuse is also found upstairs with more.
- The The Playhouse soundtrack will not be played again after Renjishi's defeat. Instead, The Commoners' Quarter will take over.
- The toilet in the upper floor is described as being really gross .
- The prop rooms have a broken "shell" that needs Rejuvenation to repair it. The shell is very similar to the one on Ryo's back.