A young Naruto paints the houses and shops throughout Konoha as a prank and runs away, while hearing the villagers complain about who would be responsible to cover the damages and how Naruto does not have any parents to complain to. Later that day, when the Third Hokage comes to his house to give him his allowance, Naruto asks him who his parents were and what were they like, stating that all he knows is that they died during the Nine-Tailed Demon Fox's Attack. The Hokage refuses to answer him, telling Naruto that it wouldn't bring back the dead and thus would be meaningless conversation.
A few years later, while in the Academy, Naruto meets Sasuke Uchiha and is continuously defeated by him. During one spar, Naruto realises that Sasuke's eyes are filled with hatred, albeit not for him. Shortly after that, he finds out that Sasuke is the only survivor of the Uchiha Clan Downfall. After graduating, Naruto and Sasuke are placed on Team 7, along with Sakura Haruno, where Sasuke proclaims that his goal is to destroy someone in order to restore the Uchiha clan while Naruto shares his dream about becoming the Hokage. The three manage to passKakashi's bell test and officially become genin. As they head to the Land of Waves for their first mission, they are attacked by two enemies, with Kakashi seemingly being killed, leading Sasuke to fight the two and save Naruto's life. Dismayed that he was scared and weak whereas Sasuke handled the conflict coolly, Naruto stabs his own hand with his kunai, proclaiming an oath on his wound that he would never be so weak as to let someone save him ever again.
In this episode, Naruto didn't attack Kakashi before he could start the bell test.
The Academy scene in this episode when Sasuke defeats Naruto, was taken from chapter 538. This episode, however, does not chronicle the events of that chapter.