The first episode of the Naruto anime series starts with the explanation
of how the nine tailed demon fox came to be sealed inside of Naruto.
The fourth Hokage, along with many of the Konoha village ninja, died to
detain the beast. Almost everything about this beginning sequence will
play a significant role later on in the anime. For now though, it is a
good explanation for why Naruto is shunned by the other villagers.
At this point, Naruto is unaware of the demon fox inside of him. He
doesn't understand why all of the villagers dislike him. Though the
years have passed, animosity towards the nine tailed beast has been
turned toward Naruto, and many of the villagers look to him as if he
himself killed their family members.
Naruto does poorly in school. He fails his ninja exam for being unable
to produce a sufficient clone of himself. Ironically, though he cannot
clone himself, nor produce a replication of his sensei, he has already
perfected the sexy no jutsu, one of his trademark jutsus that he uses
throughout the series.
After failing the ninja exam, Mizuki, one of Naruto's other teachers, informs Naruto that if he steals the sealing scroll and learns some of the jutsu within that he will pass his ninja exam. Being young and naïve, Naruto goes to steal the scroll and practice the jutsu. Once word of this gets out, the hunt for Naruto is on.
Iruka and Mizuki find Naruto and fight over the scroll. Many convincing short speeches are given on each part, trying to persuade Naruto to hand over the scroll. Mizuki wants it for his own evil purposes, while Iruka just wants to get it back for the village. Naruto learns that he has the demon nine tailed fox sealed inside of him and now understands why he is shunned by the village.
In the end, Iruka's words win Naruto over, and at the last minute when Iruka is about to be killed by Mizuki, Naruto steps in to save the day for the first time in the anime series. By unleashing the new multi-shadow clone jutsu that he learned from the scroll, Naruto beats Mizuki and earns his right of passage as a ninja. In the end of this episode, Iruka gives Naruto his Konoha forehead protector and promises to take him out for ramen
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