Lady Blue is about Miko's first love. Miko meets a young man named Hidemasa outside her apartment building, and falls in love at first sight. Just when Miko thinks she can finally live like a normal girl and enjoy being in love, a mysterious female phantom appears in her school, sucking the life out of Miko's pretty young schoolmates. Fubuki reports that something is very wrong in the Shikima realm. Miko's parents are being tortured by the sound of flutes playing, and nobody knows why. Miko and Fubuki investigate and find out that there's actually a love story behind it, for the flutes belonged to a betrothed couple (Kyoshiro and Shanahime) 400 years ago but treachery got in the way, so their love was never realized. The flutes are now cursed, and Miko's dream guy Hidemasa is kidnapped by the vengeful phantom of Shanahime in order to resurrect her Kyoshiro.