I was disappointed when they did not continue the anime. I was hoping to get to see everything, but alas. They just continued it in the Manga.
I was thrilled when I was told that they picked it back up. I figured, finally. Much to my surprise, it wasn't the whole thing. It was as stated in the Anime its self, "The Final Act". Which meant the final battle. However, its not so cut and dry as simply as the final battle. Its the leading up to the final battle.
Warning: Spoiler's ahead.
Kikyo posthumously uses the last of her powers to give Kohaku a second chance at life. Naraku finally reassemble the Shikon Jewel. Although Inuyasha and his allies defeat him, realizing his true desire is for Kikyo's love, despite his hatred towards her and that it can never be granted.
Naraku uses his wish to bring himself and Kagome into the Shikon Jewel, but Naraku's wish is revealed to be the desire of Magatsuhi, an ancient demon who was sealed in the heart of the priestess Midoriko before it became the Shikon Jewel.
Magatsuhi who aided Naraku in a temporary body prior to his defeat, intended to have Kagome make a selfish wish. So she and Naraku would be trapped in conflict, while he regained his physical form.
But with Inuyasha by her side, Kagome wishes the jewel to disappear, which destroys Magatsuhi and allwing Midoriko and Naraku to finally be at peace. This action causes Kagome to return to her time with the Well sealed, causing her and Inuyasha to lose contact for three years.
During that loss of contact, Kagome finishes Jr. High and High school. Then one day in one of her visits to the Bone Eater's well, the portal opens up and she is able to return to the past. She lives in the village with Kaede and is married to Inuyasha. Also living there is Miroku who is married to Sango.
Rin who traveled with Jaken and Sesshomaru also lives there, and they visit her often. Brining her gifts. Koga I believe is married to Ayame, the wolf demon girl he had long ago promised to marry "on the night of the lunar rainbow," a promise he had seemed to have completely forgotten when she appeared earlier, but evidently eventually had to keep. In doing so, he united all of the wolf demon tribes.
A-un the two-headed dragon demon stays with and protects Rin. Kohaku travels with Kirara to continue his demon-slaying job and saying that he was not going to return because the house was getting "crowded" with his brother-in-law, Miroku, and his two nieces and nephew. Shippo resides in Kaede's village, but often leaves to train and take the kitsune demon examination.
This anime is a continuation of where the first adaptation left off. The series follows the half-demon InuYasha, the junior high school student Kagome Higurashi and their companions Miroku, Sango, Shippo and Kirara as they search for the final fragments of the shattered Sacred Shikon Jewel and approach their final battle with Naraku.
It is well thought out and directed. It was nice that the original staff and cast from the first Inuyasha anime adaptation were brought back. It made it flow much better. The graphics are also of a good quality. It fills that void, that the ending of the previous anime left.
Giving the story its complete ending and shaping the characters in their complete forum.