A short time after Densetsu no Starfy 2, everything was calm and everyone including Stafy was happy again, until another severe thunderstorm came and shook Pufftop Palace. This time, it is more severe than the ones in the past. A lightning struikes the Magic Jar, destroys it and Ogura is free again.

The story of Densetsu no Starfy 3 takes place sometime after the events of Densetsu no Starfy 2.

Starfy was walking around Pufftop Palace, when suddenly he tripped, the clouds began to darken and debris began to fall from the sky; shocking everyone in the area. A Pufftop Guard was panicking and asked king Papa Star what was happening. The Pufftop Guard thought this was nonsense and wondered if Ogura had escaped again. Papa Star replied that it was nonsense and explained that Ogura was in no doubt sealed in the jar. They began to wonder why this was happening.

The scene changes to show an unknown being sitting on a chair. He wondered if Ogura had conquered Pufftop yet. On realizing he hadn't, the unknown being struck a lightning bolt on the jar, destroying it completely and releasing Ogura. Ogura floats over to Starfy and others, telling them that the jar had been smashed into small pieces. Ogura explains that he won't be defeated as long as he has a personage by his side and attacks Moe and Starfy, leaving them dizzy. Ogura then flies far away from Pufftop, laughing.