Short version
Shino confronts his clan about their unfair treatment of Naruto; they are initially defensive, but ultimately acknowledge his logic. Hiashi also questions Hinata about Naruto's actions on their mission, but she realises that he's fishing for something to use against him, and conceals Naruto's use of the Kyuubi's chakra. The team returns to training and D-ranks, and also encounters Team 7 returning from their ill-fated mission to the Land of Waves; unlike canon, Tazuna was killed, but Haku survived and was captured.
Longer version
Naruto and Hinata go to the Konoha General Hospital to visit Iruka. There they find Kurenai also visiting him. After she leaves, Naruto teasingly congratulates Iruka, to his and Hinata's amusement.
As she exits, Kurenai notices with pleasure the ANBU arresting the corrupt doctor who gave cruel advice to Naruto. From Iruka's investigations, she learned that Naruto regularly fell victim to orchestrated "accidents" once a month, soon after the monthly village council meetings. She considers confiding in Morino Ibiki, something she has done before regarding her own team, but decides it too risky for Naruto. Kurenai realizes that she'd prioritize the safety of her students over Konoha, given the way they've been treated.
Naruto tells Iruka about their mission to the border. When Naruto and Hinata finally leave, Neji arrives to summon Hinata to her father. At the Hyuuga compound, Hiashi questions Hinata on her mission to the border, particularly focusing on Naruto's abilities. To her own surprise, Hinata tells a half-truth to hide Naruto's use of the Nine-Tails' chakra. Hiashi sends Hinata to her room for the rest of the evening, making her miss out on Lee's celebration.
Naruto meets Team Guy at the restaurant of Lee's celebration, where Neji is visibly cold towards him. When Guy proposes toasts, Lee accidentally drinks Guy's sake. The inebriated genin uses the Drunken Fist to assault Neji, and casually talks with Naruto. When he nearly brings up the Nine-Tails, Naruto knocks him down off-guard, and Guy knocks him out. The ANBU arrive, and Guy accepts resposibility for the incident. Tenten escorts Neji home. Guy pays for the damages and takes Lee home, noting that he has never decisively hit Neji while sparring before.
Shibi Aburame calls a clan meeting for Shino, headed by Suba Aburame. Shino addresses the treatment of Naruto by the clan and the village at large. Bataru Aburame, the representative to the village council, tries to object on the basis of Shino's ignorance of the Nine-Tails, but Shino reveals he knows. He then criticizes the manner in which Naruto has been treated and slandered by the whole of Konoha, and notes that it colored his own impression of Naruto. Despite this, Shino describes his own interactions with Naruto, defending him as honest, diligent and loyal. Bataru then accuses Naruto of engaging in theft when he was younger, but when questioned, it is revealed that his crimes were not officially recorded; allegations were simply brought forward by council representatives, and no one investigated them. Bataru then openly calls Naruto a demon, which Shino criticizes as an ignorant perspective, comparable to how the Aburames are falsely perceived. He then announces his intention to leave the Aburame clan, which Shibi supports. Suba vows to investigate the matter, asking only that Shino wait on his departure. Shino agrees.
Next morning, Naruto and Hinata meet Guy and Lee for training. Lee is worn out from the incident, so Naruto and Hinata spar. Having learned of the Gentle Fist from having Neji on his team, Guy assists Hinata in her taijutsu, and also teaches her basic Strong Fist techniques to make her more versatile. After training, Guy gives Naruto and Hinata special improvements to their training weights with seals that increase their weight with proper injection of chakra. Naruto and Hinata get new supplies from Tenten's father, and meet with Shino and Kurenai. The team start their D-rank missions, recovering the Fire Daimyo's wife's cat again and demolishing an old building. After finishing the building, the genin have an early dinner at Ichiraku's.
At Ichiraku's, Team 8 encounters Team 7 again, having returned from their A-rank mission to the Land of Waves. Kiba explains that the bridge-builder Tazuna was targeted by the missing-nin Zabuza of the Mist, Haku, and the Demon Brothers. Since Tazuna couldn't afford to pay for A or B-ranked missions, he pretended he simply needed protection from bandits. Team 7 defeated the Demon Brothers, but Haku rescues Zabuza from Kakashi. Zabuza and Haku returned for a clash on the bridge, where Kiba and Sasuke fight Haku and Kakashi fights and kills Zabuza. Akamaru prevented Haku from rescuing Zabuza, and Haku surrenders. Gatou and his men arrived and killed Tazuna. When Gatou disrespects Zabuza, Haku kills him and his men. Kakashi then takes Haku prisoner. Since Tazuna is dead, the mission is a failure, but Sakura notes that with Gatou dead, Tazuna's daughter can have the bridge completed. Naruto decides not to tell them about their mission to the border, explaining to Hinata and Shino that it didn't feel right to brag.
Having learned of Shino admonishing his clan, Kurenai is proud of her student. She arrives at a gathering of jonin instructors at the Hokage's tower that announces the upcoming chunin exam. She meets with Kakashi and discuss their respective missions at Moritake's. Kakashi is impressed by Naruto's kills, and they look forward to the exam, both intending to give their students the option to take it.
Tropes:
- Afraid of Doctors: Naruto is averse to the hospital, in part due to the acidic smell, in part from the cold treatment of the nurses and doctors towards him.
- Afraid of Needles: Naruto's also scared of these.
- Broken Pedestal: Shino is disappointed to find the elders of the Aburame clan having permitted the slander of Naruto to go on for so long, Bataru in particular. However, he is still grateful for the concessions of Suba.
- Can't Hold His Liquor: Lee, as in canon. He accidentally drinks Might Guy's sake and turns manic.
- Drunken Master: Lee, again, like in canon. He becomes so dangerous that he easily evades Might Guy three times and takes down Neji. He's only knocked down when distracted.
- Mama Bear: Kurenai is willing to protect her genin over the village.
- Mentor Occupational Hazard: Considered by Kurenai, who briefly hopes that her students will be able to care for each other when she's gone. She quickly derails that train of thought.
- Original Character: Suba Aburame, the eldest shinobi of the Aburame clan, and Bataru Aburame, one of Shino's older uncles and the clan's representative to the village council.
- Shipper on Deck: Downplayed, but Naruto briefly teases Iruka about Kurenai visiting him.
- Well-Intentioned Extremist: Theorized; although Kurenai received wise advice from Morino Ibiki, she fears that his ruthless nature may lead him to threaten Naruto if it protects the safety of Konoha.
