Whisper is worried about the increasing number of bad Yo-kai, so he asks you to find one of your teachers to learn more.
A Clue at the School?
Go to the first floor of the school and go to the bottom-right side of the area. Talk to Mr. Barton, who is sitting at a desk. He hasn't seen anything unusual, although he mentions that Eddie came in to ask the same thing (but probably Eddie just asked because he likes debunking the supernatural).
Mr. Barton mentions an all-seeing crystal ball that is supposedly in Shoten Temple. Whisper says you should go check it out in case it can help you find out more. Shoten Temple is in Blossom Heights.
Head to Shoten Temple!
In Shoten Temple, go to the right side of the room and check on the crystal ball there. It turns out to be Draggie, a dragon Yo-kai. He says he will only let you use the crystal ball if you bring him a Sawtooth Stag (the non-rare kind).
Draggie 'n' the Sawtooth
After you talk to Draggie, there will be a student in the temple. Talk to him to find out where you can find a Sawtooth Stag: Mt. Wildwood. They can be found on trees there, but they are somewhat rare, so you might have to check several trees before finding one.
After you have a Sawtooth Stag, go back to Shoten Temple and talk to Draggie. He thanks you, and you become friends. Then you look into the crystal ball and see Nocturne Hospital, where you first met Kyubi.
Go to Shopper's Row and find Nocturne Hospital. It's sealed with a Rank A Lock, so you will have to go to Timers & More to get the upgrade if you haven't already. The three Yo-kai that you have to find for the watch upgrade are all in the underwater passageways. Mr. Goodsight will tell you which entrances you need to use if you want to find the Yo-kai.
The Checkup of Doom
With your upgraded watch, go into Nocturne Hospital. Inside, you find a Leadoni who says that there is currently a free health care promotion. The Leadoni will lead you to the hospital boss, but you're worried about the bad Yo-kai in this area. The Leadoni says to go to Examination Room 1 first.
Go to the left, enter the first room, and talk to the Leadoni there. It will ask you to step on the stadiometer. You can choose to either stand normally or stand on your tiptoes when Leadoni measures your height. If you stand on tiptoes, you will have to fight Leadoni after.
After that, an announcement says to go to Examination Room 2. Leave this room the way that you came in, then go to the left and follow the hallway around to the back. Go into the second room. Talk to the Leadoni to have your eye exam. He will show you a picture. Choose the correct answer. If you don't, you'll have to fight Leadoni after.
Next, the announcement says to go to the second floor to get an X-ray. Leave the room and go to the right, then go up the stairs. Go to the left, and enter the third room. Talk to the Leadoni. You'll get an X-ray and Leadoni will show you a picture of your heart. It looks strange.... Answer Leadoni's question however you wish. If you say "it's weird," you will have to fight Leadoni.
Then there will be an announcement to go to the Director's Office on the second floor. Exit the X-ray room and enter the room to the left, then go left and down. Enter the first room and talk to the person behind the desk. He asks if you have been seeing anything strange lately, and since you say that you saw his "assistant", he says you're due for a change of heart and have to go to the operating room to have surgery.
Scary Operating Room!
To get there quickly, go up through the two rooms where the Director went, then walk through the broken wall to the right. You'll be back on the first floor. Go south from there, then go left and check on the hospital bed to lie down on it.
Suddenly the bed flies into the operating room, and the doors slam shut. Whisper is locked outside. The Director tells you to lie down on the operating table. You realize that the Director must be the Boss Yo-kai, and indeed, he turns into Dr. Maddiman!
During the battle, you should use your target pins to hit the beating hearts that are in the background. If you don't, then Dr. Maddiman will be able to heal himself for a lot of HP during the battle, using the Blood Refill move. If he starts charging up Blood Refill, be sure to use target pins to pop all of the beating hearts in the background. (The heart on the screen and on the big lamp can't be popped and don't affect the battle.)
Dr. Maddiman also has the Soultimate Move "Change of Heart", which causes all three of your front Yo-kai to be poisoned. You will have to move all of them to the back to purify them.
The Power of Friendship
After you defeat Dr. Maddiman, he calls for Chairman McKraken. Whisper and Draggie come in, and Draggie's crystal ball shows you Chairman McKraken, who seems to be leading a Yo-kai invasion into the human world.
This ends the chapter. Next is Farewell, Yo-kai.