Initial-D Third Stage

Ryosuke approaches Takumi with an offer. Ryosuke has been putting together a racing team featuring the best racers of the Gunma prefecture, and would like Takumi to join.Takumi doesn't want to decide whether or not to accept the proposal until he settles his score with Emperor driver Kyouichi Sudou. He arrives at Kyouichi's home course of Irohazaka, and after driving the course once, challenges Kyouichi to a race. Sudou lets Takumi go first, planning an overtaking maneuver at the slippery area at the bottom of the mountain. To his surprise, Takumi was able to steer properly at that spot, so he wasn't able to execute his plan. At the end of the race, Takumi thought it was a tie, but Kyouichi conceded because of his failed attack. Shortly after, another Irohazaka local surfaces, Kai Kogashiwa. He previously had Kyouichi as his target, but upon knowledge of his defeat, he challenged Takumi instead. Kai turns out to be the son of Ken Kogashiwa, who was once Bunta's rival and ultimately lost to him in the final race that counted between the two of them. Kai takes Takumi by surprise by taking the "one guaranteed line" his father told him about before the race. He passes Takumi by cutting a hairpin corner short and jumping the ledge. However, Kai mistimed his strategy and this allows Takumi time to recover and catch on. He emulates this line in order to keep up with Kai. Before the race Bunta knew Takumi would be behind at this point, and cryptically told him Irohazaka's dead leaves would be his only chance. As the race approaches its finish, Takumi uses the gutters to come up inside, forcing Kai on to the side of the road where leaves are collecting, then passes when Kai spins on the leaves before the finish line.

The Christmas holiday approaches and Natsuki surprises Takumi at his house, and celebrates Christmas with him and Bunta. On New Year's Day, Miki, a former student at the same high school Takumi attended who Takumi once punched over Miki's bragging about his sexual exploits with Natsuki (seen in a flashback from 1st Stage), arrives at Natsuki's workplace and threatens to make a scene if she does not get in his car. He takes her to Lake Akina with the intention of having sex with her, but after she reveals her feelings for someone else, he flies into a rage and attempts to rape her. She escapes his car briefly and calls Takumi. When Miki hears Takumi's name, and realizes that Takumi is the one Natsuki has feelings for and that he will be coming to save her, he forces her back in the car to take her somewhere else. They pass Takumi, who is coming in the opposite direction. Takumi turns around to chase Miki. As Miki tries to get away he enters a turn too fast in the snow and loses control of his car, crashing into the guardrail. Takumi then takes Natsuki home, both confessing their feelings on the way. As spring comes, Takumi tells Ryosuke that he wants to request another battle with him, this time on Mt. Akagi, before making his decision regarding the team. It is unclear who actually wins the race, but during the race Keisuke reveals to the other members of the Red Suns that the race is not really about who wins or loses. As they approach the finish, side by side, Takumi decides that it is his desire to remain with Ryosuke and join the team.

Battle Stage

Initial D Battle Stage (special) summarizes the major street races from the two TV series. Rather than simply using clips from the TV series, the new special entirely re-animated all of the original CG car and background footage with new computer graphics rendering. The special also features a battle between the yellow FD3S of Keisuke against the white Evo 4 of Seiji, but no such race took place in the anime (although it does take place in the manga). Music is from an entirely new Super Eurobeat songs and guest commentary from legendary "Drift King" Keiichi Tsuchiya.