Identify Yourself: Powerful New Rivals

The trio from Sunagakure make their entrance as Gaara checks Kankuro for bullying local children and offers Sasuke an apology for his brother's conduct. The three have come to Konoha for the Chunin Exams, watched from a nearby tree by an unseen rival squad. The Third Hokage then asks Kakashi, Asuma, and Kurenai to name any Genin they consider ready for the exams. Iruka doubts the rookies are prepared and expects none to be put forward, so he is stunned when all three jonin recommend their students.

He challenges the choice, but the Hokage sides with the jonin once Kakashi reminds Iruka that these are no longer his pupils but shinobi under their commanders.

The next morning Kakashi hands Team 7 their application forms. Sasuke and Naruto sign on at once while Sakura hesitates. Soon after, all three are set upon by a masked ninja from another village. Moegi is snatched and left bound and gagged until Naruto rescues her, though the attacker slips away. Sakura shakes off his genjutsu but stays unsure about entering, and Sasuke overpowers the stranger, warning him off Konoha.

The assailant turns out to be a disguised Iruka, who reports to Kakashi that the team passed his trial. At the exam building, Izumo and Kotetsu block the doorway and try to scare off the hopefuls, and when a scuffle threatens to break out, Rock Lee steps in to cool it, catching Sasuke's interest. Lee then trails Sasuke and challenges him to a match.

The episode draws on chapters 35 and 36 within the Chunin Exams arc. Iruka's disguised test of Team 7 is an anime-only addition not found in the manga.