Defeated, Pegasus reflects on how losing his duel to Yugi made him unable to achieve his dreams. He's a man of his word, however, and releases the three souls imprisoned. Just then, Yami Bakura approaches him with evil intent. After a tarot reading, during which he correctly surmises Pegasus's motivations, he challenges him to a Shadow Game on the landscape of their minds. Pegasus is easily beaten due to losing his game with Yugi, and the victorious Yami Bakura takes his Millennium Eye.
Yugi and the gang arrive to see Pegasus being carried away by his guards. They enter the tower and find Pegasus's diary. Tea Gardner reads from it, and it explains that Pegasus was deeply in love with a girl named Cecelia. Just as they had gotten married, Cecelia got sick and died. Pegasus traveled all over the world to assuage his grief. He wound up in Egypt, where he met a mysterious man named Shadi, who forcibly gave him the Millennium Eye—it let him see her but not touch her.
Disheartened, but not despondent, Pegasus decided that the holographic technology of KaibaCorp along with the power of the Millennium Items could bring Cecelia back to life, and this was his reason for hosting the Duelist Kingdom tournament, kidnapping Mokuba, and stealing souls. It was all to bring back someone he loved very much.
As the group leaves, Shadi himself appears and confronts Yugi, using his Millennium Key to enter Yugi's mind. To his surprise, he finds two chambers, one for Yugi, and the other for Yami Yugi. The latter is a giant maze filled with trap doors. Shadi stumbles through several traps before Yugi saves him from falling. Shadi leaves Yugi's mind, warning Yugi to take great care. The thief that stole the Millennium Eye will go after Yugi's Millennium Puzzle soon.
This episode contains examples of:
- Adaptational Explanation: The manga only shows the aftermath of Bakura taking Pegasus' Millennium Eye, seemingly having won it in a duel. Here we actually see Bakura challenge Pegasus to a mind-based Shadow Game to take advantage of Pegasus' weakened state.
- Beam-O-War: Pegasus vs. Yami Bakura, with Ancient Egyptian laser beams.
- Big "NO!": Pegasus when Yami Bakura steals his Millennium eye.
- Childhood Friend Romance: Pegasus met Cecelia when they were children, having fallen in love with her at first sight, and they grew up together before eventually marrying...only for Cecelia to be struck down with a disease.
- The Chosen One: Shadi realizes that Yugi is this when the Dark Magician doesn't attack him.Shadi: (thinking) What's this? The Dark Magician, who in ancient times obeyed only the Pharaoh, gives heed to this youth? Impossible! Unless...this boy is the Chosen One! The prophecy comes to pass!
- Dark and Troubled Past: Pegasus's diary explains his past and motivations for holding the tournament.
- Defeat Means Friendship: Losing the duel to Yugi caused Pegasus to reevaluate what he's done, and he'll be a friend to the heroes every time he appears hereafter, not just in this series but the next.
- Door Roulette: Shadi faces this inside Yami's mind, and many of these doors have traps behind them.
- Exact Words: Yami Yugi let Shadi into his chamber saying he has nothing to hide. That's because he can't remember his past.
- Eye Scream: Pegasus receives the Millennium Eye via Shadi shoving it into his left eye socket. The dub removes Pegasus' look of horror prior to the eye being pushed in, as well as removing the blood streaming down his face when he gets up and sees Cecelia.
- I Gave My Word; Even though he lost, Pegasus kept to the agreement he made with Yugi and released the souls of Kaiba, Mokuba, and Yugi's grandfather.
- Mistaken Identity: Having sensed the theft of Pegasus's Millennium Eye but was unaware who it was, Shadi thought it might be Yugi and used his Millennium Key to enter his mind.
- Pragmatic Adaptation: This episode adapts Shadi's introductory arc from the manga, but with altered elements the circumstances are completely different at this point in the story, such as Yugi already being aware of Yami Yugi and thus able to join Shadi in Yami's mind room and Shadi doesn't bother with any further tests of Yugi either.
- Spared by the Adaptation: Pegasus is merely hospitalized after Yami Bakura steals his Millennium Eye. In the manga, Yami Bakura murders Pegasus via ripping the Eye from his head.
- Take My Hand!: Yugi saving Shadi from falling into an abyss in Yami's mind.
- Talking the Monster to Death: When the Dark Magician has Yugi and Shadi cornered and prepares to attack them, thinking they are intruders, Shadi plans to use the Blue-Eyes White Dragon tablet to destroy it. Yugi instead simply talks to the Dark Magician, assuring him they are not intruders and will go no further and leave in peace, reminding him of how he knows and trusts Yugi. This easily convinces Dark Magician to let them go, and also convinces Shadi that Yugi is The Chosen One since the Dark Magician only obeyed the Pharaoh in ancient times.
- Victory by Endurance: Yami Bakura defeats Pegasus, fresh out of his loss with Yugi, in a shadow duel with no difficulty.
