Yu - Gi - Oh ! First Series - Episode 003 " Clash ! The Strongest Monster " is the third episode of the Toei " Yu - Gi - Oh ! " anime . It first aired in Japan on April 18 , 1998 . Seto Kaiba makes his first anime appearance in this episode . Summary . First theft . Two suited men corner a boy on top of a building demanding a card off him . The boy refuses saying it is a memento of his father . They start to assault him , causing him to throw the card , " Black Magician " into Seto Kaiba ' s hand . One of the men turns to Kaiba informing him , they have now acquired all the cards he wanted from this school . As they leave , one of the men tells Kaiba that there are other schools where the cards are popular . Domino High . At school , Yugi Mutou shows his friends his " Duel Monsters " cards , telling them that the game became popular when he was in third grade and it is now becoming popular in other schools . Katsuya Jonouchi pauses and asks , " How do you play ? " . Yugi says that it ' s a card battle game and begins to explain the rules . Anzu Mazaki agrees that it sounds fun , but Jonouchi claims to not like these kinds of childish games . Hiroto Honda appears , wearing a sash reading " Strong Beautification Week " , and asserts that Jonouchi does not mean " childish game " , but rather " game that involves using your head " . Jonouchi goes over to him and asks what that was supposed to mean . Honda claims it to be as Jonouchi heard and that there were no hidden meanings . Jonouchi calls Honda a bastard , as he fills with rage . Anzu interrupts to ask Honda about the sash . Honda explains that since those cards are so popular , they are becoming a collector ' s item and that there will be people who will try to obtain them through unjust means . Anzu is slightly doubtful that people would go to those lengths for these cards . Yugi disagrees informing her that people have come here from America to buy a single card and that his Grandpa is even a maniac for the cards . Something clicks with Honda . He announces that , as part of Strong Beautification Week , he will prevent illegal cards . Jonouchi interrupts , pointing out that that ' s not really a beautification person ' s job . Honda smiles and says that a beautification member doesn ' t just clean the dirty , that is just the first step . He stands proudly , saying that few are destined for this , then reconsiders and says no , that he is the only one . He bows and alleges that that he set up Strong Beautification Week to fight that . He continues his speech , but is cut off by the homeroom teacher , asking if he can interrupt . Honda looks around and notices everyone has taken their seats and class is about to begin . The teacher then introduces a new transfer student . Yugi wonders who it could be and hopes that the new student like games . The new student enters and the teacher introduces him as Seto Kaiba . The other classmates mutter to each other that Kaiba is the heir to the top class amusement industry , Kaiba Corporation . Anzu is impressed , but Jonouchi says that he can ' t stand spoiled , rich kids . The teacher directs Kaiba to sit in the desk next to Yugi but as he is walking to his seat he notices Yugi ' s " Duel Monsters " card on the floor . After handing the card back to Yugi , he tells him that he loves games . The two become friends and after school , Kaiba invites Yugi to come to his mansion so he could show Yugi his card collection . Miho exclaims that she wants to come too and they all decide to go figuring Kaiba will be pleased . Kaiba ' s mansion . Yugi , Anzu , and Jonouchi wait outside the mansion as Honda and Miho arrive . Jonouchi is still uneasy about Kaiba saying that there should be a law against someone having such a large house . Kaiba shows them inside and is delighted that all five of them showed up . While the others are amazed by the interior of his house , Jonouchi still remains unsatisfied and Honda infers that he is jealous . Angry at his assumption , Jonouchi grabs Honda by the collar but Anzu breaks the two up and asks them to at least act properly here . However Kaiba says he doesn ' t mind ; it ' s more fun if things are lively . Jonouchi mutters that he dislikes Kaiba even more , but Honda says he likes Kaiba , who he considers to be rich , but not snobby . Kaiba takes the group to a room containing his card collection . Inside , the walls are lined with " Duel Monsters " cards , and shelves are filled with trophies . To everyone ' s surprise , Kaiba says that one is from when he won the " Duel Monsters " national tournament . Honda tells Jonouchi to give it up ; Kaiba is way above him . Miho looks at Kaiba in admiration and asks him about his theme parks . Honda tries to stop anything happening between the two , telling Miho that he has tickets , but Kaiba offers to make a reservation for all of them at a theme park . Miho then hugs Kaiba , saying he is the best . This enrages Honda , who now thinks he can ' t stand Kaiba . Kaiba asks if Yugi has any rare cards . Yugi replies that he doesn ' t have any , but Anzu asks if he had saying earlier that his grandpa had an amazing card . Kaiba says that he would definitely like to see it . Wanting to show Kaiba up , Honda and Jonouchi urge Yugi to show it to Kaiba right away . Kaiba thanks Yugi and says that he looks forward to seeing it . Kame Game . At Kame Game , Anzu , Honda , Jonouchi , Yugi , Kaiba and Miho gather around the counter , as they ask Yugi ' s grandpa , Sugoroku if they can see his card . Sugoroku agrees to show it to them , roots around a bit and produces a " Blue - Eyes Dragon " card . Kaiba is astonished , but Miho is disappointed , having expected it to have diamonds or jewels attached . Jonouchi remarks that it ' s no different than the other cards . Sugoroku sighs that they don ' t get it : The card is so powerful that it ' s production was canceled , and obsessive fans would drool over it . Seeing it that way , Anzu thinks the card is more appealing . Honda leans over the counter and states that as a beatification member , he must warn Sugoroku that the card is dangerous and requests that he turn it over for safekeeping . However Sugoroku asks why a beatification member would care . Kaiba places his briefcase full of cards on the counter and pleads with Sugoroku to trade " Blue - Eyes Dragon " for all of them . Yugi , Jonouchi and Honda are shocked by this , but even more shocked when Sugoroku declines the offer . Sugoroku explains that there is no way , he would get rid of the card ; he is not keeping it because it is rare , but because it was given to him by a dear friend from America . He looks back at a picture of himself and another man as he explains this . He describes the card as a treasure filled with memory . He says that truly precious treasures have your heart in them and for that reason Kaiba should also cherish every card in his briefcase . Kaiba admits that Sugoroku is right , he had made a mistake and closes his briefcase . He then leaves to go home . Jonouchi compliments Sugoroku on saying something great and Miho hugs him , stating that she now sees him in a new light . On his way home , Kaiba still thinks about the " Blue - Eyes Dragon " . Domino High . At school , Jonouchi and Honda are now playing " Duel Monsters " , while Yugi explains the rules . Honda proceeds to Summon " Zombie " , which has 800 ATK and places it in the Graveyard terrain . Jonouchi goes next and Summons " Dark Dragon " , which has 1500 ATK . He begins to celebrate winning , while Honda hangs his head . However Yugi corrects them , pointing out that Honda is the winner . He explains that while the ATK and DEF of " Zombie " are indeed weaker that those of " Dark Dragon " , while Zombie is the Graveyard terrain , its power is doubled . Jonouchi drops his cards on the table in frustration and Honda claims that his cards have the beautification ' s heart within them . Jonouchi claims that a beautification like Honda in a zombie would be pretty dirty , but Honda laughs that Jonouchi is just being a sore loser . Miho and Anzu enter the room and greet the others . Miho notes that Jonouchi and Honda have taken - up " Duel Monsters " and Anzu explains that it ' s because they want to challenged Kaiba . Jonouchi and Honda then point at each other and accuse that of being the other ' s agenda . As they are about to start arguing , Kaiba enters . Kaiba greets Yugi and reminds him of their phone discussion last night . Yugi roots in his bag and takes out the " Blue - Eyes Dragon " card , saying his grandpa let him borrow it for the day . Kaiba thanks Yugi and tells him that he wanted to see the card again so badly after Sugoroku taught him how to love the cards . Yugi hands Kaiba the card and Kaiba acts delighted , while he secretly plans on switching the card with a counterfeit in his pocket . Kaiba drops the card , pretending it was an accident , but gives Yugi the fake after picking it up . However Jonouchi and Honda both spot the exchange , while Yugi seems oblivious to it . On the way home , Yugi looks at the card with the feeling that something isn ' t right . Anzu catches up to him and asks why he isn ' t with Jonouchi and Honda and informs him that they said they were going to play Kaiba in " Duel Monsters " , so she thought that they would be with him . Yugi is surprised to hear this . On the roof of the school , Kaiba meets Jonouchi and Honda and asks why they asked to meet him here . They tell him not to play dumb ; they know he switched cards earlier . Kaiba laughs that there is no way he would do that , since it ' s stealing . Honda claims that his beautification eyes don ' t miss a speck of dust , so Kaiba can ' t fool him . Jonouchi seizes Kaiba by the jacket and says that he couldn ' t stand him from the beginning . Jonouchi raises a fist , but Kaiba tells him that he ' ll regret it . A suited man , grabs Jonouchi ' s arm and punches him away . Honda rushes over to Jonouchi and swears at Kaiba . Another suited man appears and Kaiba explains that their job is the protect him , the next president . Yugi runs to the roof worried about his friends , and finds Jonouchi and Honda on the floor uncouncious , the suited men having their feet on their backs . Kaiba told him to not believe their lies . Yugi tells him he already know he switched the card and left with it , but he figured that later he will return it back to him since he said he also loves games . Kaiba smiles while Yugi ask him to return it ; it ' s his grandpa´s most precious treasure , and Kaiba can get one for himself . Yugi approches and begs him to return it since it´s like his grandpa´s heart , but Kaiba gets angry and knocks him with the briefcase while he advice to not touch him again . Yugi falls on the floor . Kaiba explains that cards don´t have any heart ; cards are only cards and all that stuff about the heart is something that stupid people like him beleive in hoping that others do the same . Kaiba tells him to explain to his grandpa that a game is not about heart , and that he has to understand that in order to win . Kaiba leaves , saying that he never thought he would hear such nonsense at this school . Yugi tries to stop him , but one of the suited men grabs him from the back of his jacket , and says to Kaiba that they will take care of him before knocking Yugi unconscious . At that moment , Yami Yugi comes out and stands up , telling the two suited men that they are useless , and orders to get out of his way while smiling at them . Before Kaiba leaves the school , Yugi calls him to play a game , and surprises Kaiba with his new appearance . Meanwhile , Jonouchi and Honda wake up and find the two suited men unconscious . Time to Duel . Yugi and Kaiba are about to play " Duel Monsters " . Kaiba reminds Yugi he is an expert on Duel Monsters and asks him if he can handle that . Yugi answers is that they will find that out and warns him that this Duel Monsters will be different from the others , Kaiba doesn´t seem to worry about it . Yugi explains the rules : The duel and its outcome are detailed below . After the duel ends , Yugi is left alone with a ruined table , figuring that Kaiba didn´t call himself a Duel Monsters expert for nothing . He then picks up the Blue - Eyes Dragon card from the floor and returns it to his grandfather . Kaiba ' s mansion . Kaiba , furious about the Duel ending in a draw , destroys the shelves with cards and trophies . He declares that he won´t forget this and that he will fight against Yugi until he defeats him . Featured Duels . Katsuya Jonouchi vs Hiroto Honda . Honda ' s turn Honda Summons " Zombie " in the graveyard . Jonouchi ' s turn Jonouchi Summons " Dark Dragon , and uses it to attack " Zombie " . Since " Zombie " is in the graveyard field , its attack is doubled ( " Zombie " : 800 → 1600 ATK ) . " Dark Dragon " is destroy ed . Honda wins . Dark Yugi vs Seto Kaiba . Both players start with 2000 Life Points . Kaiba ' s turn Kaiba Summons " Gargoyle " in the dark forest . Dark Yugi ' s turn Dark Yugi Summons " Dark Dragon " in the lake . " Dark Dragon " attacks and destroys " Gargoyle " ( Kaiba : 2000 → 1500 Life Points ) . Kaiba ' s turn Kaiba Summons " Minotaurus " in the desert . " Minotaurus " attacks and destroys " Dark Dragon " ( Dark Yugi : 2000 → 1500 Life Points ) . Dark Yugi ' s turn Dark Yugi Summons " Holy Elf " in Defense Position . Kaiba ' s turn Kaiba switches " Minotaurus " to Defense Position and Set s 1 card . Dark Yugi ' s turn Dark Yugi draws " Wight " and passes his turn . Kaiba ' s turn Kaiba activates his face - down " Growth " to increase the ATK of " Minotaurus " ATK ( " Minotaurus " : 1700 → 2200 ATK ) . " Minotaurus " attacks and destroys " Holy Elf " . Dark Yugi ' s turn Dark Yugi Summons " Summon Demon " in the dark forest . " Summon Demon " attacks and destroys " Minotaurus " ( Kaiba : 1500 → 1200 Life Points ) . Kaiba ' s turn Kaiba puts " Blue - Eyes Dragon " onto the top of his Deck without Dark Yugi noticing and draws it . He Summons it in the lake but it is destroyed because of its will to fight clashing with its loyalty to Yugi ' s grandpa . ( Dark Yugi ' s Life Points decrease to 50 . ) Dark Yugi ' s turn Dark Yugi activates " Revive the Dead " to revive " Blue - Eyes White Dragon " . ( Kaiba ' s Life Points decrease to 100 . ) Kaiba ' s turn Kaiba draws and Summons " Gremlin " to split the field in two which ends the Duel in a DRAW .