Pegasus Castle Pegasus Castle is situated on the top of a hill on the Duelist Kingdom island . In the anime it was given a much longer staircase to the top . The Duelist Kingdom tournament finals took place here . To gain entry , a Duelist must insert 10 Star Chips into a lock . This rule also applied to visitors wishing to see Pegasus during the tournament , including Seto Kaiba . Locations . Annex . Pegasus has an annex , containing rooms for guests waiting to see him . Inside one such room is a screen on the wall , which Pegasus can use to contact people in the room . In the manga , Croquet told Seto Kaiba he could go here , when he refused to let him see Pegasus . Outraged Kaiba took Croquet hostage in an annex room , demanding that Pegasus see him immediately . After receiving news that Yugi had gotten 10 Star Chips , Pegasus contacted Kaiba and told him to take 5 Star Chips , which he must wager in a Duel against Yugi . If Kaiba wins , then he may see him . Dungeon . The dungeon is located underneath the castle . Two ways of accessing the dungeon are known . One is a doorway on the outside the castle that scanned a persons hand . If it recognized the handprint as authorized , they may enter . The other was a hidden passage inside the castle . It could be opened by leaning on a statue , causing a wall to slide across , revealing a stairway . Kaiba was taken here by Kemo to see Mokuba . However Kemo triggered a hidden alarm and Kaiba fled . He managed to find Pegasus , who showed him Mokuba . Pegasus then trapped Mokuba ' s soul in a " Soul Prison " card in front of Kaiba . Tristan went to the dungeon to find Mokuba ' s body , while Yugi Dueled Pegasus . He snuck around in a suit of armor and accidentally found the hidden passage , by falling onto the statue . Pegasus ' henchmen found him , but Yami Bakura helped him escape , as he wanted to take Mokuba ' s soulless body as his new host . Rooftop . The rooftop of the castle is a prominent location because it is where Yugi and Kaiba ' s Duel took place , with Yugi ' s friends on the archway of the wall and Keith Howard from a faraway tower window as audiences . As the Duel took a turn on Yugi ' s favor , Kaiba literally uses the battlefield to his advantage by placing himself at the edge of the turret , which leads to a long fall down the ravine , and uses that to threaten Yugi into forfeiting a chance of winning . With the prospect of Kaiba ' s death , Yugi gave up and Kaiba wins . Sanctuary . Pegasus ' sanctuary was a private tower that overlooked the location of the tournament finals . This location was only present in the anime . It contained items to honor his memory of Cecelia . While investigating the arena where Pegasus Dueled Kaiba to see if the former had been cheating Téa , Tristan and Bakura found a hole in the wall that would have allowed someone in the tower to spy on the Duel . Suspecting Pegasus of cheating they snuck into the sanctuary , by climbing up the side of the tower . However Pegasus confronted the intruders and , using his Millennium Eye , transported them to another chamber , where some occult activity took place . As Pegasus attempted to use his Millennium Eye on them , Yami Bakura countered with the Millennium Ring . Yami Bakura then transported Tristan , Téa and Bakura back to their rooms , causing them , as well as Pegasus , to forget the events of the night . After losing to Yugi , Pegasus went to the sanctuary , where he released the souls of Solomon Muto , Seto Kaiba and Mokuba Kaiba . He also left a diary of his quest to revive Cecelia . Before he could leave , Yami Bakura faced him in a Shadow Game and took his Millennium Eye . With Pegasus missing , Yugi and his friends went to the sanctuary to investigate , where they found the diary he left .