The Kusagari clan is one of the three clans that rule Caldera in Red Steel 2 (technically four including the Ninjas). They reside in Lower Caldera in the Kusagari Temple, a tall building that eventually becomes Shinjiro's base of operations sometime after the Kusagari Clan Massacre.
The Kusagari clan was comprised of 84 families as well as 33 protectors (one of which is the Hero). Notable members include:
- Jian, the swordmaster of the Kusagari clan is not a true member of the clan since he has no heriditary ties with the Kusagari Clan. Jian took an oath of allegiance to the clan at a very young age. He has a sharp tongue which he often uses to criticise those that fall short of his expectations, especially The Hero. A master of both the blade and the forge, he instructs The Hero in using the Hidden Kusagari moves and Special moves as The Hero's journey progresses.
- Tamiko, a technical expert whose expertise includes computer hacking and the geography of Caldera. She often communicates to the hero via a handheld communicator and acts as an advisor to The Hero along his journey.
- The Hero, the survivor of the Kusagari Clan Massacre and the journeyman who seeks to kill Shinjiro, the man responsible for the deaths of the many Kusagari. The Hero, like the other Kusagari Protectors, is a master swordsman and gunslinger.
- Shinjiro, a member of the clan who had intentions of replicating the Sora Katana, a special sword created by the Kusagari Clan forged from rare minerals. He demanded to know the secrets of the Sora Katana, but was never given the secret method and minerals in order to create the katana. He had even gone as far as to wipe out the clan. Shinjiro converted the Kusagari Temple to his headquarters and had hired Okaji, a dreaded samurai who leads the Katakara Clan.
Sometime before the events of Red Steel 2, a respected Kusagari member, Shinjiro, demanded to know the secrets of the Sora Katana so that he could produce more. When the clan refused to reveal the secrets, he brutally murdered all 32 remaining protectors and all remaining families. The Hero, when he returned to Caldera, was the last of the Kusagari.