The eastern segment of the Inagoe Fault in the Furukawa Fault Zone, northern Gifu Prefecture, is thought to be active based on the discovery of active fault outcrops and geomorphologic evidence. Although the fault trace is thought to extend westward to the Kurigatanigawa area along the western segment of the fault, direct geologic evidence of fault activity there has not been reported. This study describes a newly discovered active fault outcrop along the western segment of the Inagoe fault and assesses fault activity on this segment. The outcrop is located on the trace of the Inagoe Fault and has a 5 m-wide fault gouge or breccia zone. The composite planar fabric in the fault gouge zone shows a dextral sense of shear, consistent with the sense of movement of the fault inferred from stream offsets. Unconsolidated sand and gravel layers, which were originally deposited above the fault zone, are also sandwiched within the fault zone. The major axes of gravel clasts adjacent to the fault gouge are vertical, and striations are found on their surfaces. Radiocarbon dating of a soil sample in the sand and gravel layer yields an age of AD 1521-1658, suggesting that an earthquake occurred on the western segment of the Inagoe Fault after this time. These observations suggest that (1) the fault outcrop corresponds to the core of the Inagoe Fault, (2) an overlying sand and gravel layer fell into crack and was subsequently deformed by movement on the fault, and (3) the western segment of the Inagoe Fault might have ruptured during one of the four historical earthquakes known to have occurred in northern Gifu Prefecture over the past few hundred years.