Ran tells them of how, during the attack, he was knocked out after managing to rip one of the foreign shinobi's shirt off. There was this purple marking similar to the one Menma has right now. However, Neji manages to convince him that, at the present time, it would be cruel to kill an enemy who has no memories of what he's done. Instead, wait for him to remember, and then kill him. Ran then performs surgery on Menma.
Later on that night, once the procedure's complete, the group is sitting inside the room, looking at Menma. Naruto expresses his disbelief that someone like Menma can be a bandit. Neji assures him that, once Menma's memories return, they'll know how and why he became a bandit. He stands up and finds Menma looking at him. Menma asks him if he really was a bandit. Neji leaves, telling him that he should focus on recovery at the present moment.
Once everyone's asleep, Menma sneaks out despite his injured back. He goes to the wall, and finishes the construction by assign one more log. Once he's done, is surprised to find Fuki throwing a rock at him. That's when the rest of the villagers appear and also start throwing rocks at him. Menma bows down, asking for forgiveness. Naruto and everyone else rush over, shielding Menma. The villagers start throwing rocks at them, saying those who help Menma should also be punished.
Meanwhile, the rest of the bandits start to launch their second attack. Instantly, everyone is ordered to seal the drawbridge and hide. The group of bandits however manages to break in. The leader starts to play a flute, casting the entire group in a genjutus. However, Menma was nearby and plays his own flute to counteract it. After some grappling, Naruto managed to get the leader's flute and break it in half. The leader flees. Menma managed to defend Fuki, who came out of hiding after losing her necklace. She finally remembers how to speak. However, Menma has her go back in hiding.
Naruto then runs over. Menma demands Naruto take him to a nearby dam. The dam was originally the village's supply of water. But the leader of the bandits, Shin, placed exploding tags there. If the raid on the village didn't go successful, then he'll blow up the dam, flooding the village. Naruto remarks they can't stop a flash flood unless they move a mountain in its path. This gives Menma an idea.
While being carried up the mountain with Naruto, Menma admits he eventually regained his memories. He was raised in Shin's clan after the loss of his parents when he was little. The Shin clan was a small clan, but thought they held a bright future, until the Sound Village appeared. Eventually, most of the Shin members left for the Sound, and the clan grew desperate for money. So they attacked the village after hearing about the gold. During the attack, Menma purposely used a technique that encouraged memory loss to forget about the raid. But the technique went badly, and eventually he remembered about the attack on the village.
Naruto throws him off, telling him not to joke around. Everyone had thought he had seriously lost his memories. Menma just admits he was too scared to bring his clan's crimes to light. He suddenly gets up and hands Naruto his flute, telling him to stop Shin. He tells Naruto goodbye and shoves him off the mountain.
Back at the village, the villagers start to panic upon hearing the explosion of the dam. Neji watches with his Byakugan. In the gold mines, Menma does a series of hand signs. All the exploding tags (and there are tons of them) in the mine starts to go off. He whispers, "Goodbye, Naruto-kun." The mountain explodes, creating a dam of rocks that stops the flood. Naruto manages to get to a safe distance away. In disbelief, he screams out, "Menma!" He sees Shin run past, and goes after him, before easily defeating him with a 'Rasengan'.
Back at the village, everyone mourns Menma. Fuki calls Menma, 'big brother'. Neji takes note that not knowing anything until the end might have been salvation to him. Back at Konoha, Naruto's sitting on a cliff with two bowls of the special bamboo ramen. He's eating one of them, while the other's sitting before Menma's flute. Tsunade and Shinzune watch from a distance. Tsunade remarks that people get stronger when they have memories they never forget. A sudden wind picks up, as though Menma's watching.