The New Year's Tournament kicks off, with Building 13's Cell 13 being chosen as one of the participates. The first round includes all guards and inmates, the second has Yamato Godai and Rock team up while Seitarou Tanabata and Uno team up for Round 3.

Jyugo, Uno, Nico and Rock make an attempt to escape, only to get caught by Hajime Sugoroku. The group later spends some time bugging Hajime and indulging in idle chat. The Warden, Momoko Hyakushiki, returns and discusses Jyugo with Hajime, telling him not to underestimate him.

The fight between Liang and Upa against Hachiman continues. Nico shows up out of nowhere and greets Upa, moved by his last line in the previous episode. Qi recalls events from his past when he joined up with Hachiman. Nico intervenes in the fight to save Upa, meanwhile, Uno freaks out about how they all lost sight of Nico. During the fight against Hachiman, Nico's medicine starts to wear off, and an alternate persona appears to take over.

Jyugo makes a routinely escape attempt and is caught by Hajime while he's napping in the Guard's room with Kuu. All the inmates and guards seem to be going through a typical and ordinary day, much to the chagrin of Mitsuru Hitokoe, who wants something exciting to happen during Part 2 of the anime.

While Hajime is on his three day suspension, Kenshirou Yozakura, Kiji Mitsuba, and Samon Gokuu take turns each day to supervise Building 13. Jyugo finally returns to Cell 13 and apologizes to them for all he's hidden from them.

Enki realises the prisoners have escaped as Mitsuru and Kenshirou begin questioning the situation. Meanwhile, Trois and Honey free Kiji who takes care of Daisen Kokoriki and Daisen Youriki before defeating Ruka. Jyugo finally finds Hajime before freeing him and Samon from their cells. Kiji handcuffs the inmates, but they are suddenly confronted by a hoard of surveillance dolls as are Jyugo and Hajime.

The stone oven that Rock wanted, for Building 13 winning the New Year's Tournament, is finally installed. Nico also gets a game room.

The final match of the New Year's Tournament begins; Kenshirou Yozakura & Musashi vs. Hajime Sugoroku & Jyugo. Hajime seems to be doing fine with his match, but Jyugo ends up in a bit of trouble against his opponent, whom he seems to have some history with.

Upa wonders if someone other than Enki is involved in the situation. Meanwhile, Jyugo and his group reach level 2 where they are confronted with numerous Jiang-Shi dolls. As Trois explores the area, they encounter Ruka Gojou and other guards with talisman on their foreheads, Daisen Kokoriki and Daisen Youriki. Trois tries to defeat him with a handmade a flame-thrower he made with leftover parts. Just as they think they are free, Ruka Gojou appears and captures Jyugo.

Uno explains to Honey and Trois that when Nico's medicine wears off he goes out of control. As Nico's alternate persona awakens, he fights Hachiman. In the meantime, Liang and Upa restrain Daisen Rokuriki and destroy his talisman. Qi interrupts the fight and while Nico attacks him, he injects Nico with his medicine, rendering him unconscious. Hachiman feels as though he has won, however, to his, Liang, and Upa's surprise, Qi injects poison into Hachiman's leg. While Hachiman is unconscious, Upa, Liang, and Qi talk. Hachiman eventually regains consciousness, and tries to fight the trio, but he's taken down by a group attack.

Jyugo has been captured by Ruka Gojou, but is saved by surprise attack from Trois. Honey gets frustrated with Jyugo's uselessness and wants to leave him behind. Eventually, Ruka, Daisen Youriki and Daisen Kokoriki catch up to the group and Jyugo is caught by Youriki. While trying to help Jyugo, Uno is restrained by Ruka. Though initially reluctant, Honey decides to help. The two inmates of Building 3 decide to repay their debts to Jyugo and Uno, and deal with Ruka and the Daisens. After managing to subdue them, Ruka surprisingly comes out unscathed, now prepared to fight them seriously.

Sometime before the second round of the New Year's Tournament, Tsukumo is visited by Hanzou Hattori. During the visit, Tsukumo's past is revealed.

Musashi discusses more of his past prior to meeting the Scarred Guard with Kenshirou Yozakura. Uno gets everyone from the New Year's Tournament together to play in the game room he got for Cell 13's victory in the tournament. Later, Jyugo leaves Cell 13 for some fresh air at night, only to encounter Elf.

Rock challenges Samon Gokuu to test his strength and is defeated with little effort. The Warden leaves to attend a meeting at the Police Department HQ. Mao Nimaijita accuses Samon about potentially following in his older brother's footsteps. Yamato and Rock return to Building 13 after spending time at Building 5, and while not themselves, they attack Hajime and Jyugo.

Hitoshi Sugoroku starts working as a Nanba Prison guard, much to Hajime's surprise. Uno and Rock don't believe that the "kind and cute" Hitoshi is the little brother of the "vicious gorilla" Hajime and try to disprove that they're siblings by testing Hitoshi's abilities as they escape.

The battle between Jyugo and Musashi continues on as Jyugo goes berserk and let's loose his power after hearing Musashi mention the man that placed the shackles on him. The Warden orders the guards, Hajime Sugoroku, Kenshirou Yozakura, Samon Gokuu, and Kiji Mitsuba, to contain the two inmates.