Panty & Stocking have to go into the nasty Daten City sewers to find a Ghost that is eating people in the bathroom.

When Stocking gets slightly overweight, she goes on an obsessive diet with no such luck. However, she ends up getting fatter, eventually turning into a giant the next day, revealed to be the work of a Ghost.

Daten High holds a lingerie run, in which students race in their underwear. The run is soon interrupted by a Ghost that eats everyone's underwear, including Panty and Stocking's weapons.

Panty is kicked out by Garterbelt for the loss of her powers, but he secretly helps persuade her, with assistance from her grandmother, to stop Corset from using Brief to unlock Hell's Gate using Hell's Monkey. Panty has sex with Brief, breaking her hymen and restoring her powers. Stocking returns from Heaven and helps Panty take on Corset and the demon sisters.