In The Return of Daimajin, (also titled "Wrath of Daimajin", "Majin Grows Angry", and, The Return of Giant Majin") the second film in the trilogy, the Daimajin idol has taken up residence on an island in the middle of a lake. The lake is surrounded by two peaceful villages, Chigusa and Nagoshi.
Near these two villages, but not bordering the lake, is another village. Ruled by an evil lord, the citizens flee to Chigusa as often as they can, and make their way there, where the lords are only too happy to take in the refugees. One day the evil lord decides to take over the two villages, and he sees a window of opportunity in a festival that is held every year.
The heroes end up on the run as the villains chase them. People keep ending up back on the island with the statue. Eventually, the evil lord has his men shatter the statue with a large amount of gunpowder. Majin's shattered remains end up at the bottom of the lake. True to the samurai formula is the amount of melodrama in Return of Daimajin. Occasionally something paranormal happens, but such occurrences are met rather indifferently. In the final fifteen minutes of the film, Majin finally comes to life and, like his predecessor, inflicts serious damage upon the evil lord and the surrounding landscape.