Time ticks away as Naruto gets all tense. Finally, the 10th question is about to be given. Ibiki then gives a last rule, the "hopeless rule". Meanwhile, outside the exam halls, Kakashi, Asuma and Kurenai wonder how their teams are doing. The note that Ibiki is Konoha ANBU's interrogation and torture squad leader and is an expert in mental torture. They are certain that Ibiki is giving the examinees a tough time. Ibiki then explains that they are given the decision to take the 10th question or not. However, the catch is if you not to take it, you will fail and thus, your entire team fails as well. On the other hand, if you decide to take the 10th question and fail it, you will lose the privilege of ever taking the Chuuni Exam again and will remain a Genin forever. One after another, examinees leave the room. Naruto slowly raises his hand but only to slam it down at the last moment. Naruto then states that he's come this far and no matter what the outcome, he will take the question. Naruto's outburst wipes off everyone else's uncertainty and 78 Genins remain. Ibiki announces that everyone in the room passes and there is no such thing as the 10th question. He then explains the purpose of the test. The pass/fail decision of the entire team was created to put heavy pressure on the Genins. The second thing is the test was made way too hard for Genins to answer and was actually created to test their ability to gather information through stealth and techniques. The 10th question is made to be similar to a real life situation of a shinobi where decisions regarding your life are to be made. He continues that shinobi missions are always risky and courage and confidence are a necessity of a Chuunin who will hold steadfast to their decisions. Suddenly, an examiner breaks through the window and announces the second exam examiner, Mitarashi Anko is here. After observing that 78 remains from a total of 153, she tells Ibiki that he has lost his touch and has become too lenient but vows that she will reduce the number to less than half. The following morning, the remaining participants gather at the 44th training area "The Forest of Death."

Ibiki after entering the room reprimands the Sound Team for their attack. He states that nobody is allowed any fighting unless permission is given. Even if permission is given, nobody is allowed to kill. If anyone does so, they will fail the exam. The first exam is paper test. Naruto getting all tensed up until Hinata who was sitting next to him encourages him. Ibiki then moves on to explain the rules.

1. Each participant starts off with 10 points. The test consists of 10 questions each worth 1 point. The test is deductive therefore if you get all questions right, you remain with 10 points and if you mis-answer 3, you are left with 7 points.
2. The pass or fail decision is determined on the teams' total points.
3. Anyone caught cheating will have 2 points deducted. Anyone that is left with 0 points will fail the test.
4. Any team member that fails, the entire team will fail.
5. The last question of the test will be given on the 45th minute after the test starts.
6. The test will last for 1 hour.

Moments after the test starts, Sasuke realize that the test's purpose is not to be able to answer the questions, but to be able to cheat without getting caught. Naruto being the dumb one of the team struggles. Sakura, the only one knowing how to answer the questions starts doing it. As some ninjas starts to use their jutsus to cheat, Naruto begins to flip out as he doesn't know any of the questions. Hinata then offers to let him copy her answers but Naruto refuses realizing that one of the Examiners notices what Hinata might be doing. As the test continues, more and more people starts to use their techniques to acquire answers to the tests.

As Sasuke, Sakura and Naruto moves towards the exam hall they met Kakashi. Kakashi then reveal that the exam can only be taken in a group of 3 and he acted to let them decide on their own for if he told them, Sasuke and Naruto would pressure Sakura in to participating. After entering the hall, they were greeted by the other Rookie 9. Rookie 9 consist of 3 teams; Kakashi's Sasuke, Sakura and Naruto, Asuma Sarutobi's Shikamaru, Ino and Chouji and lastly Kurenai's Hinata, Kiba and Shino. After the Genins chatted bout each other, they were approach by another Genin, Yakushi Kabuto who has participated in the Chuunin Exams 7 times but failed. He then advices the rookies about the exams and points out that he has gathered many information over the period of years while taking out a deck of cards. Sasuke then request information on Gaara of the Sand and Rock Lee of Konoha. Kabuto states that Rock Lee is an expert Taijitsu martial artist but has almost nil ability in Ninjitsu and Genjitsu. Gaara on the other hand is mysterious and his exact techniques are unknown. However, he returns from all his missions without a single scratch. Meanwhile, outside the hall, Kakashi is having second thoughts about his decision of letting Sasuke, Sakura and Naruto participate in the Chuunin Exam. Kabuto then warns the rookies they should keep a low profile but Naruto being his loud self shouts at the top of his voice to everyone else in the hall that he won't lose to any of them. The Sound Team annoyed by Kabuto's statement of their small village decides to attack him. One of the Sound Genins throws a punch at Kabuto but Kabuto manage to avoid being hit directly. However, Kabuto's glasses broke and he fell to his knees and vomit. The Sound shinobis then state that they are called the Sound Village for the particular reason that they utilises "sound" for their attacks and there is practically no way to escape sound. Soon, Morino Ibiki the head examiner for the first exam of the Chuunin Exam shows up.

Rock Lee, who was the Genin being pushed around earlier by the Examiners is interested in fighting Sasuke. His reason not merely wanting to test his skills against an Uchiha but also he's trying to impress Sakura who he has a crush on. Rock Lee blows kisses and hearts to Sakura who dodges it with her life. Naruto feeling left out offers to take Sasuke's place in the fight and rushes to attack Rock Lee. Rock Lee manages to block Naruto's attack easily and Sasuke is impressed. Thus, Sasuke accept Rock Lee's challenge. Sasuke attacks but was knocked back by Rock Lee as if Sasuke was nothing more of a small obstacle. Sasuke feeling threatened now activates the Sharingan and charges again. However, once again, Sasuke's attacks were futile. Sasuke then sense that Rock Lee's attacks aren't Ninjitsu nor Genjitsu but mere Taijitsu. Although the Sharingan was able to see the moves, Sasuke was not able to keep up with Rock Lee's extreme speed. Rock Lee then moves to finish off Sasuke with the Shadow Dance but was stopped by a large turtle appearing from no where. The turtle scolds Rock Lee for attempting to use a Forbidden Technique and at the end, Gai Sensei appears. Sasuke, Sakura and Naruto stares in ridicule as a person who's weirder looking that Rock Lee appears and punches Rock Lee hard in the face. Gai asked how's Kakashi doing and notes that he's Kakashi's eternal rival. Rock Lee then states that he's actually not the strongest in his team, Hyuuga Neji is. Naruto, Sasuke and Sakura admits that they require a lot more training before being able to defeat such shinobis but states the Chuunin Exam is going to be interesting.

From the last episode, Gaara appears from no where next to Sasuke without Sasuke sensing him. Gaara stops Kankurou from wasting effort on the brats (Konohamaru and Naruto especially). Gaara was also impressed of the ability Sasuke to injure Kankurou with a little pebble. We soon find out that these three shinobis are from Village of the Sand and they are named Gaara (the one that appear beside Sasuke), Kankurou (the one with face markings and grabbed Konohamaru) and Temari (the girl with the huge fan). The 3rd Hokage asks Kakashi, Kurenai and Asuma whether they think their teams are eligible for the Chuunin Exam and all 3 of them says their teams are ready for the exam. Iruka objects stating that Naruto isn't ready yet. Gai even backs Iruka but it could be just personal competition between himself and Kakashi so he doesn't want Kakashi's team to be better than him. However, Kakashi stands firm to his decision telling Iruka that Naruto is now his student and not Iruka's anymore. Next morning, after long waiting, Kakashi arrives late at the meeting point again and hands each of them the application form for the Chuunin Exam. Sasuke and Naruto are both anxious about it but Sakura seems a little uncertain. After Naruto finished his mission, he met Konohamaru and the Konohamaru Corps. While talking to them, a shinobi appeared from no where and capture Moegi. He demands the Scroll of Sealing. Naruto then defeats him with the Kage Bunshin no Jutsu and saves the day. On the same day, Sasuke asks Sakura out for a walk with him. Sasuke tells Sakura to quit the Chuunin exams as he thinks she's not ready yet. She's happy that Sasuke is concerned bout her. Suddenly a shinobi appears and hold a kunai against Sasuke's neck and ask Sakura to quit the exam. She tells him that everything is just a simple illusion trick because she knows Sasuke will never ask her out. With that the shinobi withdraws from the area. Iruka then appears on a roof and reports to Kakashi that indeed all the "rookie nine" is prepared for the exam. Back at the Academy 2 bullies were making a scene as trying to stop people from going into the examination room. Sasuke, Naruto and Sakura arrive and Sasuke states that it's an obvious Genjitsu trick and even his teammate, Sakura notices it. Sasuke then attacks the bully but was stopped by Rock Lee. Sasuke was shocked that his kick was being stopped so easily. Everyone introduce themselves then head on their own way. The bullies transform back into Examiners and it seemed that they were only testing the rookies.

Waking up in the morning, Naruto have his breakfast then makes his way to the bridge to meet the rest of Team 7. Kakashi arrives late as usual. They were given D class missions and Naruto tries to beat Sasuke in everything but always end up in a disaster. While weeding a garden of herbs, Naruto tried rushing and un-earthed the herbs as well, while cleaning the river, he trips and nearly fell over the waterfall but was saved by Sasuke and while walking the dogs, Naruto just have to pick the largest dog and was walked by the dog instead into a mine field. At the end of the day, Kakashi sends them home. As Sasuke walks off home, Sakura ask him whether if he would like to practice with her. Sasuke replied that she should practice with Naruto since she's the "same" as Naruto. Inner Sakura was seen crushed with a large rock. Sasuke then corrected himself saying she is actually "lower" than Naruto. Inner Sakura get crushed even more by the boulder. A box with 2 holes that is supposed to be a rock moves towards Naruto. (Anyone should know by now that there's only one person in the entire Konoha with such lousy camouflage ability) The box explodes revealing Konohamaru, Moegi and Udon; the Konohamaru Corps. Sakura walks up and punches Naruto to the floor. Konohamaru being shocked that his leader is being grounded called Sakura and ugly bitch. Maddened, Sakura chases them. Konohamaru bumps into two weird looking shinobis that weren't from Konoha as their forehead protector reveals. The guy lifted Konohamaru and called him a brat. Naruto attack him but was tripped suddenly by something. Sasuke interferes by shooting a small stone at his hand making him drop Konohamaru. Another sand shinobi appears beside Sasuke without Sasuke realizing. His name is Gaara. He tells the other two shinobi that they should get going and just as about to leave, Sakura intercepts asking why they were in Konoha. The female shinobi of the group shows her their traveling documents and stated that they in Konoha for the Chuunin Exam. As they move away, Sasuke ask for Gaara's name and vice versa. The 3rd Hokage announces the Chuunin exam will begin within a week on the 1st of July.

Gatou arrives with his men and states that he no longer requires Zabuza. Zabuza apologizes to Kakashi for the earlier fights but the fight ends now as he no longer have a reason to fight Kakashi. Gatou walks toward Haku's lifeless body and kicks it. Naruto angered screams at Gatou and runs towards him but was stopped by Kakashi. Zabuza tells Naruto that Haku is already dead and he was only using him as a tool for he wanted his bloodline limit. Naruto protested telling him of Haku affection and love towards him and it is just too cruel to allow him to die as merely a tool. Naruto's words touched Zabuza and tears fall from his eyes. He asks Naruto for a kunai and then charge at Gatou and his men holding the kunai with his teeth. He cuts through Gatou's men and reveals to Gatou that he will show him the reason he's known as a devil back home. Finally making his way though the horde of men with swords and spears sticking into him, he approaches Gatou. After telling Gatou about his end, Zabuza kills him. As he walks back towards Haku, Gatou's men make way for him. Zabuza says goodbye to Haku then falls down on the floor. Naruto looks away in sadness but Kakashi tells him not to for it is a death of a shinobi who has led a difficult life and should show respect. Sasuke regains consciousness and realizes that Haku didn't intended to kill them in the first place. Suddenly Gatou's men interrupted stating that they have killed the person that pays them and they want revenge. Just as they were charging, Inari and the town's people arrive and make a stand for their village. Naruto and Kakashi use Kage Bunshin to seemingly increase their numbers and Gatou's men retreated in fear. Kakashi move Zabuza beside Haku as it was Zabuza's last dying wish to see Haku's face. As Zabuza lay down beside Haku, he mentions that he always cared for Haku even though it never seemed so. Zabuza tries to touch Haku's face with his last strength and wished that he could go to the same place as Haku is going but it would be impossible. Snow falls even though it's not the right season and Zabuza feels that Haku is crying then dies. As Kakashi and Team 7 bury Zabuza and Haku, Naruto vows never to be a mere killing tool and will follow his way of ninja (Always keep to his word). The bridge was finally completed and as the shinobis makes their way home, Tazuna named the bridge as Naruto Big Bridge hoping that someday it will be a world famous bridge.