The film follows Kaoru Yoshikawa, whose search for her missing brother Tsuyoshi leads her to Kozukata, an isolated village that seems to harbor dark secrets.

Opening in medias res, lead protagonist, Kaoru Yoshikawa (Maho Nonami) is shown screaming in front of flames, asking why it had to be done to her.

While going there, Kaoru sees a missing person poster of a Chinese woman named Sally Chen, nearby which she finds a tunnel leading to the village.

Heading to the local police station to fix her car, she meets Sally again who antagonizes her when she discovers her father sitting in the desk.

Running away, Kaoru confronts Kozo who admits that Izumi had actually been dead several years ago, and that his appearance in the village is merely trying to celebrate the festival as he believed it will give a chance for him and his wife to reunite with her.

However, he realizes that the scarecrows will turn into mindless monsters once they are made, which are further fueled by Izumi's malevolent spirit who haunts the village since she died grieving.

In 2001, Kakashi was adapted into a live-action Japanese horror film, directed by Norio Tsuruta, starring Maho Nonami, Ko Shibasaki and Grace Yip.

Derek Elley reviewed the film for Variety and concluded that "Tsuruta's deliberately restrained direction and a gentle ostinato score by Shinichiro Ogata are very effective in the opening reels at building a sense of foreboding from natural surroundings.

"[1] Beyond Hollywood's review said that "whilst “Uzumaki” was a wacky affair, featuring wild special effects and odd transformations, “Kakashi” takes a very different route, focusing instead on atmosphere and melodrama, recalling more adult films such as “Inugami”" and concludes that "those who enjoy deliberately paced, mournful films that focus on mood and character are likely to be entertained and satisfied, as this is one of the better examples of the last few years.