While still attending the Ninja Academy at the Hidden Leaf, Hinata is passionately welcomed home by her younger sister Hanabi. Though Hanabi wanted to play with her, Hinata told her she needs to train with their father. The next morning, Hanabi is accompanied by her caretaker Natsu Hyuga in a walk through the village before witnessing Naruto being scolded. Asking Natsu what is going on, Hanabi is told to stay away from Naruto before returning home to finish her work. Afterwards, she peeks on Hinata's training session with Neji before witnessing her father save her sister from their cousin by activating his curse seal. The Hyuga Clan's Elder, noticing that Hanabi was peeking earlier, approaches his granddaughter and explains what had happened as well as the destiny of the Branch Family to protect the Byakugan. Following this event, Hiashi becomes Hinata's sparring partner as it eventually becomes clear to the Elder that Hinata is not fit to be the clan's heiress. When Hanabi's own talents are realized by the Hyuga Elder, and fearing his oldest daughter's inabilities, Hiashi arranges a fight between the two sisters to determine which one of them would be the future heiress. This battle ultimately ends in Hinata's defeat and falling out with her father while Hanabi is declared as the clan's new heiress.