Hage, also known as Yashimano Hage or more properly as Dazaburō, is an ancient and powerful tanuki who comes from the island of Shikoku. His name includes the title "Hage," which means "baldy," a reference to his aged and furless appearance. He is one of the three legendary Transformation Masters summoned from Shikoku to help the tanuki of the Tama Hills in their struggle against urban development. Physically, Hage is a small, elderly tanuki with light brown fur and a long, beard-like growth of fur on his chin. His eyes are rarely shown, typically only opening during moments of great significance or when he is using his powerful illusions.

In terms of personality, Hage is mild-mannered, calm, and deeply empathetic toward the plight of the Tama Hills tanuki. He arrives as a wise and benevolent figure, willing to pledge his legendary skills to a cause that is not his own. However, following the intense effort and ultimate failure of the major counter-offensive known as Operation Specter, Hage undergoes a significant and tragic transformation. He becomes senile, losing his grip on reality. In this diminished state, he develops a messianic complex, believing himself to be a Buddhist arhat, or saint. He starts a Buddhist dancing cult, which attracts the tanuki who have lost the ability to transform, offering them a different kind of purpose.

Hage's role in the story is that of a roused legend and a final, desperate hope. He is one of the masters brought in to teach and lead the younger tanuki, representing the pinnacle of their ancestral power. His key relationship is with the rest of the Tama Hills tanuki, whom he serves as an ally and mentor. In one notable instance, at the request of the young tanuki Shoukichi, Hage demonstrates his supreme mastery of illusion. He re-enacts the legendary feat of the samurai Nasu-no-Yoichi, shapeshifting into the young warrior, transforming the stout tanuki Gonta into a horse, and conjuring a stunning, large-scale illusion of the sea and boats for the other tanuki to witness.

The character's development is a tragic arc from revered master to a figure of delusion. After the failure to scare away the humans, his senility leads him to his final act. In a bizarre and poignant scene, Hage uses his own body to transform his testicles into a treasure ship. He and his small band of followers then sail out to sea on this vessel, with the implication being that they are sailing to their deaths, having chosen a mythical and spiritual exit rather than continue to struggle in the changing world. Hage's notable abilities are among the greatest in the film. As one of the legendary masters from Shikoku, he possesses immense shape-shifting power, capable of creating massive, detailed, and awe-inspiring illusions that blur the lines between reality and fantasy, a skill he maintains even as his mental state deteriorates.