The first film in Shin-Ei's series of annual WWII themed anime television movies for children "Sensou Douwa" (war story).

The human world has been attacked by an unknown force. Using poisoned thorns, it has put all humans to sleep. Agumon, Gaomon and Lalamon are the only ones left to defeat this enemy. Guided by Rhythm, a young girl they saved, they learn that their enemy is called Argomon. But what can the three digimon do, when they can't even evolve.

"Mine has been a life of much shame." Tokyo, 2036 (Showa year 111): a revolution in medical treatment has conquered death... By means of internal nanomachines and the "S.H.E.L.L." system whose network controls them, human beings suffer no diseases, require no treatment for injuries, and are guaranteed a 120-year lifespan, free from illness. Yet this consummate social system warps the Japanese nation in a host of ways: unresolved economic disparities, ethical decadence resulting from deathlessness, grave environmental pollution, and the "Human Lost" phenomenon, in which people themselves, disconnected from the S.H.E.L.L. network, become malformed. Japan teeters wildly between two potential futures: civilization's restoration or its destruction. Atmospheric pollution suffuses "Route 16" in the Outside—the area outside the Route 16 beltway. Youzou Oba, who lives an idle, drug-saturated life, joins Masao Horiki, a mysterious man who associates with the drag-racing gangs, on an incursion Inside—the area within the Route 7 loop where the privileged class lives—only to be embroiled in a violent struggle. When he encounters a malformed sufferer of the Human Lost phenomenon, a "Lost," Youzou's life is saved by Yoshiko Hiiragi, a girl of mysterious abilities who belongs to the anti-Lost agency H.I.L.A.M., and he discovers that he himself also possesses extraordinary powers... Degradation and death. Life and hope. Buffeted by fate, a man tears himself apart and cries out. Rage. Sorrow. Pathos. Consumed by despair and bitter tears, Youzou Oba is himself transformed into a demon. A human lost... or a human who can find himself?

The Team Rocket leader, Giovanni, has found Mewtwo in a remote area of the Johto region. As Giovanni tries to re-capture Mewtwo, Ash and his friends are kidnapped by Domino, a new Team Rocket member, while trying to rescue Pikachu from Jessie and James. The Clone Pokemon are also captured and are then used as bait for Mewtwo. The situation then becomes a battle between the wills of Mewtwo and Giovanni; and Mewtwo also tries to discover if it and the clones have a purpose in life, even though they are products of science.