Hokkaido, Sokaku Takeda and Onisaburu Deguchi

It was during this time in Hokkaido that he met Sokaku Takeda, grandmaster of Daito-ryu Aiki Jutsu. After meeting Takeda and find himself no match for his teacher, Ueshiba seemed to forget everything else and threw himself into training. After about a month, he went back to Shirataki, build a dojo and invited Takeda to live there, which he did.
Upon hearing of his father's serious illness, Ueshiba sold off most of his property and left the dojo to Takeda. He would not to return to Hokkaido.

On his journey home, he impulsively stopped in Ayabe, headquarters for the new Omoto-kyo religion. Here he met the master of the new religion, Deguchi Onisaburo. After being enthralled with Ayabe and Deguchi, he stayed three additional days and upon returning home, found that he had stayed away too long. His father had passed away. Ueshiba took his father's death very hard. He decided to sell off all his ancestral land and move to Ayabe to study Omoto-kyo. For the next eight years, Ueshiba studied with Deguchi Onisaburo, taught Budo, and headed up the local fire brigade.

A pacifist, Deguchi was an advocate of non-violent resistance and universal disarmament. He was noted to have said, "Armament and war are the means by which the landlords and capitalists make their profit, while the poor suffer." It is intriguing that a man of this nature could become so close to a martial artist such as Ueshiba. However, it did not take long for Deguchi to realize that Ueshiba's purpose on earth was " to teach the real meaning of Budo: an end to all fighting and contention".

The study of Omoto-kyo and his association with Onisaburo profoundly affected Ueshiba's life. He once stated that while Sokaku Takeda opened his eyes to the essence of Budo, his enlightenment came from his Omoto-kyo experiences. During his early 40s (around 1925), Ueshiba had several spiritual experiences which so impressed him that his life and his training were forever changed. He realized the true purpose of Budo was love that cherishes and nourishes all beings.