Zenkouji Temple in Nagano City has many legends associated with it. On the east side of the road leading to Zenkouji, just south of the Nioumon Gate and outside one of the pilgrim lodges, is a small statue and sign about a devoted raccoon dog (mujina in Japanese).
Next to the sign is a small sculpture of the raccoon dog and the monk.
The lantern itself is still in the grounds of Zenkouji Temple. Look for it about 20m west of the southwest corner of the main hall.
There is another, longer version of this story. A raccoon dog’s parents had died tragically, so the raccoon disguised itself as a human and travelled to Zenkouji. He wanted to dedicate a lantern to comfort his parents’ souls. He checked into the pilgrim’s lodge, and organized the construction of the lantern. After it was completed, he was relaxing in the bath when the landlord discovered he was a raccoon. He ran away. A while later, a samurai came to Zenkouji. Late that night, he went to pray at the temple. Near the lantern, he saw an apparition which was following him. He drew his sword and fought the ghost, and in the battle, he accidentally struck the lantern. Next day, the samurai went back to the temple and saw a scar on the lantern, from which blood had oozed. The lantern photo above shows a diagonal mark on the square stone above the vertical writing. Maybe that is the sword mark? The samurai left town and headed north. While travelling through the deep forest in the mountains, he was buried alive by a sandstorm, and died. Why? Because three years earlier he had needlessly killed the raccoon dog’s parents while travelling over a mountain pass. (Thanks to Miyairi-san for help with the translation.)