"The Loser Ninja" (落ちこぼれ忍者, Ochikobore Shinobi) is episode 432 of the Naruto: Shippūden anime.
Tsunade is caught in the Infinite Tsukuyomi, and dreams of a different past. In it, she is given Jiraiya's latest work, and recalls when he was still writing it. She begins reading it. It begins with a malevolent nine-tailed fox spirit attacking a village, and the shinobi who fought it. One shinobi risked his life to seal the fox, Minato, who survived the ordeal. Years later, Minato discusses a meeting with the Third Hokage with his wife Kushina. Minato recalls accompanying the Third to a meeting with the Uchiha, to ensure their continued allegiance. Kushina wakes their son Naruto, berating him for jumping out of bed and not having breakfast with them, and accusing Minato of spoiling him. The villagers dislike Naruto, but show him some respect as he's the Hokage's son. Naruto picks up Sasuke at his home and is greeted by Itachi. Sasuke is bothered by Naruto picking him up every day, and denies that they're friends. At the village's gates, two guards find a passed out shinobi who can barely say "Ageha".
Kakashi takes Team 7 to the Konoha Cemetery to see the graves and monuments of shinobi who died in combat. He tells them the story of a disgraced shinobi who committed suicide after being condemned for saving his comrades instead of finishing a mission. He stresses the importance of team-work and tells them to train. Staying back, Sasuke asks Kakashi why he is on the same team as Naruto. Kakashi assumes Sasuke blames Naruto's poor Academy past for the team not receiving S-rank missions. Naruto is excited for missions, and when he explains to Sakura his desire to be Hokage, Sasuke accuses him of being shown favouritism, as he's the Hokage's son. Naruto and Sasuke argue, and Naruto challenges him to a race, and takes off without warning. Sasuke and Sakura see Kakashi's signal in the sky, and Kakashi tells them the Hokage is calling. Naruto fails to notice a chasm on his way, and begins falling after failing to jump it. The fall triggers an encounter with the fox spirit sealed in him, and Naruto demands to be given its chakra as rent. The fox lends its chakra out of self-preservation, and Naruto uses it to summon Gamabunta, saving himself. The rest of Team 7 finds Naruto unharmed. Minato recalls the day the Nine-Tails attacked, and splitting its chakra between Kushina and Naruto, as well as Jiraiya telling him Naruto would learn to harness its power. Team 7, Team 8, Team 10, and Team Guy are tasked with searching for missing shinobi.