Episode 3 of "One Piece" whisks us seven years back to Syrup Village, where a young Usopp raises a false alarm about incoming pirates. This boy-who-cried-wolf act gradually loses its impact, leaving Usopp disregarded by the villagers. In another setting, Luffy proudly reveals his newly designed pirate flag, receiving less than enthusiastic responses from Nami and Zoro.
Amidst these interactions, the crew's attention shifts to a leaking problem that damages Nami’s communication device. This prompts a visit to the Gecko Islands to look for a new vessel. Zoro becomes intrigued by the sizeable 15-million Berry bounty on Buggy but is conflicted when Luffy views it as motivation to explore the Grand Line.
Buggy, at this point, is preoccupied with reassembling his body parts. His efforts stop due to an associate of Arlong, who dispatches him effortlessly. Meanwhile, the crew debates the ethics of stealing a ship. Luffy insists on finding an ideal ship by legitimate means, captivated by a stunning vessel at the shipyard.
That’s when Usopp reappears, informing the crew that the attractive ship belongs to his friend who owns the shipyard. He suggests that they can arrange a favorable deal. When the team meets this friend, Kaya, at her home, they encounter her unsympathetic spouse, Klahadore. Despite the cold reception, they receive an invite to join Kaya's birthday dinner after a quick change of attire.
Usopp gifts Kaya a large pearl for her birthday, weaving an exaggerated adventure story around it. However, Kaya's cough reveals her ongoing illness. At dinner, Luffy overshadows the birthday celebrations with his fervent talk about commandeering the ship he fancies, drawing Klahadore's ire but Kaya's silent approval.
Tensions rise further when there is a revelation that Klahadore, who is plotting to seize Kaya's inheritance, assassinates the butler, Merry. As this unfolds, Buggy finds himself held captive by Arlong, who is curious about Luffy's role in the larger hierarchy of the East Blue.
Separately, Koby boards a marine vessel with Garp and wins a game of Go, gaining a crucial lesson in decisiveness. Koby then gets the mission to capture Luffy and crew, as their flag appears on Gecko Island. Back at Kaya's residence, Usopp remains loyal to his ailing friend, while Zoro and Usopp stumble upon the murdered butler. Zoro identifies Klahadore as the notorious pirate Kuro, leader of the Black Cat Pirates, before being incapacitated.
Usopp rings the village bells to no avail, reinforcing his credibility crisis. Amidst all this, Nami encourages Kaya to stand her ground, hinting at her own untapped strength. Usopp is eventually found by Koby and the Marines, who offer their support.
As the episode concludes, the camaraderie among the main characters starts to deepen, though Zoro and Nami remain enigmatic figures. The episode ends on a cliffhanger, promising more dramatic developments, including potential backstories for the newer crew members. It sets the stage for an unpredictable future, leaving viewers eager for the next installment.