A bamboo cutter named Sanuki no Miyatsuko discovers a miniature girl inside a glowing bamboo shoot. Believing her to be a divine presence, he and his wife decide to raise her as their own, calling her "Princess". The girl grows rapidly, earning her the nickname "Takenoko" from the village children.
Miyatsuko comes upon gold and fine cloth in the bamboo grove the same way he found his daughter.
Kaguya grows in beauty, attracting suitors. Kaguya tells them she will only marry whoever can bring her the mythical treasure mentioned.
On the night of the full moon, a procession of celestial beings descends from the Moon, and Miyatsuko is unable to stop it. An attendant offers Kaguya a robe that will erase her memories of Earth. They leave, and Kaguya looks back at Earth one last time, and cries as she remembers her mortal life, which is now only a dream to her.