Yôkai daisensô aka Yokai monsters Spook warfare (1968)

I still haven't understand if this film is the sequel of '100 monsters' as various sources from the internet describe it in alternate ways. It is still a great production from ADV, in a series of Japanese children's movies created in the 1960s. Two tomb raiders accidentally wake up the Babylonian demon, Daimon who flies up to Asia and especially Japan during the Middle Ages. He arrives at Izu magisterial palace and capture the souls of the local Lord and his stewards, Saheji. Lord's daughter, Ohie, with the help of her guard, Shipanhiro, try to figure out what happens and their people's behavior has changed. The local ghosts are the only ones who know what is truly going on and try to confront Daimon. Enjoy marvelous Kappa, the water imp, and a variety of spirits based on Japanese folklore and traditional art. The first film in a series that inspired the recent Great Yokai War. Directed by a veteran of the Zatoichi series and the excellent samurai/horror/kaiju film, Daimajin.