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Fruits Basket episode 2 starts where the first episode left off. Tohru had seen the transformation of Kyo, Yuki and Shigure into animals. A postman knocks on the door with a delivery. Tohru is still shocked at what has happened and isn’t sure what to do. Shigure in animal form signs for the package with a stamp.

Yuki turns into a rat, Shigure a dog and Kyo, a cat. She learns ten others of the Sohma family are also afflicted by this curse. They soon transform back to their human forms except they are naked. Their clothes don’t transform along with them and remain wherever they transformed.

The Zodiac curse secret is explained to Tohru. There is also some uncertainty to Tohru’s fate given she is an outsider who has learned of the Zodiac curse. Shigure expects things will be fine yet resolves to report the incident to the clan head. A previous incident had resulted in the memories of those involved being wiped.

Kyo and Yuki begin to fight over what happened. In the process, Tohru gets injured trying to stop them. The fight continues with the house getting even more damaged. Yuki wins the fight.

Tohru worries about the outcome of the fight but realises she is late for school. She goes to change her clothes.

Tohru is late for school and has to explain to her friends that she overslept. Yuki’s fan club notices that Yuki was also late for school but hasn’t made the connection yet.

Yuki worries that Tohru may have told her friends but Tohru reassures him that she wouldn’t do that. Yuki explains about the previous incident. He had been playing with friends and a girl hugged him. Many people saw the transformation that their memories had to get erased. A flashback also hints at the abuse Yuki has suffered by the family head. Yuki attempts to leave but Tohru tries to stop him. She hugs Yuki again and he transforms at school. She asks that if her memory must get erased, that they continue to be friends.

Tohru returns to the Sohma house and runs into Kyo who has fixed the roof that was damaged in the previous episode. Kyo attempts to apologise with much difficulty but is interrupted. Shigure returns home at the same moment with good news.

Shigure states that things are fine with the family head and Tohru can continue living with them. Tohru thanks them for their kindness.

Tohru completes cleaning the pigsty of a kitchen and Yuki is impressed at how well it turned out. He professes surprise at the sight of a rice cooker not knowing Shigure owned one. Tohru cooks dinner for everyone.

Shigure and Kyo return home arguing. Shigure has tricked Kyo into transferring to the same school as Yuki and Tohru. He had been refusing to go to his previous school, instead training in the mountains to defeat Yuki.

Another day at school and Kyo has made his debut. He is being fussed over by the class, his orange hair drawing unwanted attention. Not liking being the centre of attention, Kyo storms out and a girl tries to stop him. He flips her over with his martial arts to avoid triggering the transformation.

Yuki and Kyo are talking about the situation outside school. It turns out the rivalry is caused by Kyo wanting to be accepted into the Zodiac. The cat is not actually part of the Zodiac and this is because the cat was tricked by the rat when they were invited to dinner.

Tohru interrupts them wondering what is going on. She grabs Kyo’s hand before tripping, triggering his transformation yet again. Kyo yells at Tohru shooing her away. She is distraught.

Kyo tells Shigure he wants to leave. He believes he isn’t cut out to live with other people. Shigure reassures him. Getting along with people takes practice, too, and he might learn about himself in the process.

Yuki returns home without Tohru, who is at work. Realising that she is walking home in the dark alone, Kyo goes after her. Tohru fearing that a pervert is after her, swings her bag and hits Kyo.

They finally make up. Kyo apologises to Tohru in a roundabout way. Tohru also apologises for hitting him with the bag, and professes her like of the Zodiac cat. She makes friends with Kyo and feels that she understands him a little better.

The episode ends with four eating dinner together. Yuki and Shigure gently tease Kyo. Tohru thinks to herself that the days ahead of her will be fun.