Episode 3, in the development of the bold and brash youngster, begins in an odd environment. Upon arising, the weary Naruto has his breakfast, and here we see that although he lives alone, having no parents, he has considerable comforts under the circumstances. These include a refrigerator, an electric coffee maker, and a poster on the wall of "No No Noodles." His breakfast consists of a cup of instant soup and noodles. It is a modern world for the little boy who concludes his meal by drinking long and deep from a carton of milk, an act that will have profound effects on this most important of days.
Once off to school, Naruto is able to easily avoid the clumsy ambush by the small grandson of the Third Hokage, warning the child not to bother him today as he has an important explanatory meeting.
We are then introduced to the hyperactive, and somewhat inner-directed Haruno Sakura, a girl who is worshipped by Naruto but whom she despises in return. She, instead, is infatuated by the coldly disinterested, Uchiha Sasuke. On her way to school, she bumps into classmate, Yamanaka Ino, a tough girl, who is just as infatuated with Sasuke. The two girls, equally matched rivals, race eachother to school, reaching the door simultaneously, whereupon we are treated to a comedy that has borrowed extensively from The Three Stooges.
Naruto, sitting quietly in class is challenged by another student, who tells him it is only for those who have graduated. Naruto corrects him with, "Hey, can you not see this forehead protector?" While a few rows behind we first glimpse a sweet and gentle girl who has a crush on the boy with a demon fox sealed within.
When the girls of the class compete to see who will sit next to the cool Sasuke, Naruto is incensed by their attentions, crouching onto a desk before Sasuke to glare at him from inches away. Another student intentionally bumps Naruto, who loses his balance falling into Sasuke, lips locked. While the embarrassed boys gag and spit, Naruto senses danger and looks back to see an angry mob of girls, with Sakura in the lead, muttering to herself, "Damn it! I was supposed to get Sasuke-kun's first kiss!"
Back in the headmaster's office, Hokage-Sama and the assembled teachers see the events on the crystal ball, realizing that once more Naruto is the center of trouble.
Class begins as teacher Iruka arrives, announcing that today they are all official Ninjas of the level of Genin. They will be split into groups of three where they will set out upon missions, each supervised by a Jounin teacher. The girls dream of being matched with Sasuke, while Naruto dreams of being matched with Sakura.
Finally the line-up of the 7th group is kakashi mangekyou sharingan announced: Uzumaki Naruto, Haruno Sakura, and Uchiha Sasuke. Naruto is thrilled to be with Sakura, but disappointed to be with Sasuke. Quietly, a few rows back, Hyuuga Hinata is sad that she was not able to be teamed up with Naruto. Instead she becomes a member of the 8th group along with Inuzuka Kibo and Aburame Shino. As the morning class continues and the final groups are announced, Sakura sends a victorious hand signal to her rival, Ino, angering the latter, while announcing to herself: "Alright! Love prevails!"
The 10th and final group is announced: Yamanaka Ino (butch female), Nara Shikamaru (unenthusiastic guy), and Akimichi Chouji (the fat kid who only likes to eat).