Roughly a year after his first run-in with the shady Yakuza types of small-town Japan, a notorious blind swordsman blows back into town seeking an encore. Actually, the hopeful pacifist Zatoichi is merely interested in paying his respects at the grave of a fallen comrade, the honorable samurai he out-dueled last time, but the shadier denizens of this corrupt village have long memories and see his visit as an opportunity for revenge.
While that drama plays out, Ichi makes enemies with a misbehaving prince, befriends a trio of prostitutes and crosses paths with another acquaintance: a one-armed former romantic rival who still carries a grudge. The latter is portrayed by Tomisaburo Wakayama, later known for his lead role in the Lone Wolf and Cub films (and star Shintaro Katsu's real-life brother), which makes his eventual duel with Ichi doubly interesting as a sort of unofficial pre-crossover. Not for the last time, either, as 1970 would produce a match between our blind protagonist and Toshirô Mifune's Yojimbo... but that's a topic for another time.
As The Tale Continues is concerned, I found it a mild step down from the first film. There's more action this time, and a much faster pace, but the additional subplots make for a less focused narrative and drain power from the larger developments and reveals of the third act. Another outstanding performance from Katsu, though, and wow, what a final shot!