The Legend Continues is Chapter 27 of Tsubasa: Reservoir Chronicles.
In the morning, Fai and Syaoran peer through a window to see that snow has blanketed the town. Sakura then enters and begins to tell them about her sighting. Suddenly, she is interrupted by a scream. Outside, a woman clutching a toy kitten screams that her child is missing. Syaoran realizes it was the little girl he first saw when entering the town. The woman is then questioned by a militiaman until he overhears Sakura mentioning the golden-haired princess. The man dashes at Sakura, but is blocked by Syaoran. Sakura continues to describe her sighting as the townspeople shriek, calling it the curse of the princess.
Mr. Glosum enters and tries to quiet the crowd. He initially suspects that the group might have had something to do with the kidnapping. Kyle assures him that they did not leave the house last night, as his room is situated right by the exit. He surely would have known if they left. With the situation having been diffused, everyone decides they will search for the missing children. Kyle suggests they eat breakfast first, and the group obliges. While walking back, Syaoran notices a few black birds squirming about in the leafless trees.
Over lunch, Kyle discusses Sakura's sighting. He repeats the legacy of the golden-haired princess, and cites her name: Emeraude. Syaoran is surprised to learn that each bit of the legend is factual. Kyle also mentions that Sakura is the only person to ever see the golden-haired princess. Syaoran decides to pay a visit to the mayor and ask him about the disappearances. The mayor says about two months ago one child went to pick berries but never returned. He also says that the history book which Kyle referenced gave no clues about the current disappearances.
Outside, Syaoran uses the history book to locate the castle of the legend. Unfortunately, a moat surrounds the castle and there is no bridge over the water. Syaoran concludes that it is impossible for children to enter the castle, given the lack of a bridge. Strangely, they spot Mr. Glosum out in the woods by the castle. He informs them that there is nothing to see here, so the group decides to return to town.
Back in Spirit, a close friend of the missing child embraces the toy kitten. Kyle had been visiting the parents of the child, informing them that they have yet to find their daughter. Kyle notices Syaoran has the history book and asks how much he has learned. They open the book and scan for clues. Apparently, the weather become very unstable 300 years ago which caused crops to fail. Other than that, the book provides no new insights on the princess. Syaoran, however, provides one bit of insight: books aren't always truthful.
Peering through her open window, Sakura catches snowflakes and wonders if this truly is her first time experiencing snow. Suddenly, the golden-haired princess appears once again. Scared for the children, she jumps from her window, landing in a nearby tree. Once she makes it to the ground, she notices the princess leading a line of children into the forest. Through the trees, Sakura notices the princess is leading them to the castle. What she witnesses next is startling: the children are actually walking on the water to get to the castle! At the most inopportune time, Sakura begins to feel tired. She tries to maintain, but she fails to stay awake.