Chapter 037 is thirty-seventh chapter of Volume 7.
Mizuki is at the Mikage Shrine with the shrine spirits, and has finished drinking his divine sake. He complains about being considered inferior to Tomoe, using examples such as not being able to go to school with her. The shrine spirits state that it is mostly due to his inexperience with humans, and show Mizuki on the television Kurama, and use him as an example of how to be familiar with humans, and state that he would be fine if he were to be like that.
Mizuki recognises him as "Tengu-kun" and becomes convinced that Kurama is using black magic and leaves the shrine to find him, in the hope that Nanami would finally accept him.
He finally arrives at Tokyo but is unable to handle the malicious air in the city, stating the air wasn't this bad back when he last came (which was during the Edo period). He is quickly by forced by two human females to buy a product (presumably a fake talisman or something of the sort). Unable to refuse due to the intimidating aura exhibited by the women, Mizuki buys the product using the all the money from the shrine's donations and is left with no money.
Still determined to find Kurama, he asks a few men who quickly shout at him, but Mizuki instead cooly states that he was only asking for directions, letting them get a glance of his white snake. The men run away frightened, and catch the attention of a police officer. In a hurry, they board a taxi, but are kicked out due to their lack of money, despite Mizuki's attempts to try and pay with the fake talisman he had bought. Kurama, who notices the commotion, comes to help, and Mizuki is relieved to see him. At that moment Kurama's manager comes and invites him to a party.
At the party, Mizuki isn't enjoying himself, as the food tasted bad as they were meant for humans. There he asks Kurama why he would choose to live in a place so polluted and evil. Kurama asks if Mizuki was running from home, to which Mizuki denies. At this answer, Kurama tells him that he should go home as he isn't ready for a place like Tokyo.
At the party Mizuki passes out due to drinking a bad sake, and is found by a young human girl who's working as an assistant. She helps him and tells him that despite not belonging in this sort of world (referring to the acting industry) she would keep working at it. Mizuki becomes inspired by her words and gives her his divine sake as a token of gratitude, and returns home.