Naruto has to get his picture taken for his Shinobi I.D., so he puts on a bunch of make up to make himself look like a Shogun. When the 3rd Hokage sees Naruto's picture, he tells Naruto to take it again. Naruto and the 3rd Hokage's meeting is interrupted when the 3rd's Grandson, Konohamaru, launches his daily sneak attack. Konohamaru's attack fails when he falls. Konohamaru's trainer, Ebisu, comes in behind him. Konohamaru says something tripped him and blames Naruto. Naruto grabs hold of Konohamaru and yells at Konohamaru for blaming him. Ebisu tells Naruto to watch it, because Konohamaru is the Grandson of the 3rd Hokage. Konohamaru thinks Naruto is going to back off with the knowledge of him being the 3rd's Grandson, but Naruto kicks Konohamaru's ass and leaves. Ebisu gives Konohamaru a lecture; telling him that the only way he will become Hokage is to follow his instructions. Konohamaru ignores him and leaves to find Naruto.

While walking through the streets of the Leaf Village, Naruto notices that someone is poorly trailing him. The person trailing him is none other than Konohamaru. Konohamaru asks Naruto to train him. Naruto doesn't want to at first but eventually agrees. Naruto and Konohamaru then discuss chakra. Naruto then wants to see Konohamaru perform a Transformation Jutsu and points out a woman to transform into. Konohamaru turns into a fat version of the woman. The woman notices and beats up Naruto instead of Konohamaru because Konohamaru is the 3rd's Grandson. Naruto then takes Konohamaru to a store to look at girls in magazines, so Konohamaru can study a woman's figure and get the Jutsu right. The two get kicked out, so they go to the women's baths. They both use Sexy Jutsu and enter the baths. The women discover  who they are and kick Naruto's ass. Naruto complains about how they only beat him up, and Konohamaru explains it is because he is the Grandson of the 3rd Hokage. Naruto tells Konohamaru to start practicing the Sexy Jutsu. Each time Konohamaru performs the jutsu, he fails.

Meanwhile, Ebisu continues searching for Konohamaru because of his fear of how Naruto will influence him.

In the forest, Naruto and Konohamaru take a break. Konohamaru tells Naruto that he was named after the village, and he wishes people would cal him by his name, instead of "Honorable Grandson." He also reveals to Naruto that he wishes to some day be Hokage. Naruto tells Konohamaru that he will have to fight him for the title, because he also wishes to be Hokage

Iruka visits the 3rd Hokage to discuss Naruto. The two discuss how the 4th Hokage had sealed the Nine-Tailed Fox inside of Naruto and how the 4th had hoped everyone would treat him with respect.

Ebisu discovers Naruto and Konohamaru sitting together. Konohamaru performs a Sexy Jutsu, perfectly, to knock Ebisu out, but Ebisu doesn't have a nose bleed. Ebisu grabs hold of Konohamaru, so he can take him away from Naruto. Naruto uses his Multi-Shadow Clone Jutsu and then uses his Sexy Jutsu to transform the clones. Ebisu has a nose bleed and is knocked out.

After the battle, Konohamaru complains about not being able to defeat his stupid trainer. Naruto tells Konohamaru that there is no easy way to become strong or Hokage, so he will have to work hard. Konohamaru asks Naruto who he thinks he is to lecture him like that? Konohamaru then tells Naruto that from this point on they will be rivals, not student and teacher. Naruto smiles and walks away. Konohamaru salutes Naruto.

The 3rd Hokage watches his Grandson and Naruto through his crystal ball; glad that they are finally on their way to becoming great Shinobi.