Hassan tells Amir on the morning of the kite tournament that he had had a dream. In the dream, they are at Ghargha Lake with thousands of other people, but no one is swimming, because it is said that a monster has come to the lake. Amir responds to this fear by jumping into the lake and is followed by Hassan. The two of them go all the way to the middle and then swim back to prove that there is no monster. The people clap wildly for them and then change the name of the lake to Lake of Amir and Hassan, Sultans of Kabul. Neither boy has a clue to what the dream means.
Initially, Amir is scared and wants to withdraw from the tournament but Amir cheers him up and they send their kite up. Amir wins the annual kite fight after a long and hard fought battle with a blue kite. As soon as he cuts the blue kite he is thrilled to see Baba clapping his hands and hollering and pumping his fists wildly. However Amir has a nagging doubt and he wonders whether Baba is proud of him or proud of Hassan. Hassan runs after the last kite which Amir cut, which Amir plans to present to Baba as a trophy.
Amir looks for Hassan and finds him cornered in an alley by the bully Assef and his friends. They want to take the kite and beat up Hassan. Assef tells Hassan that he is not really Amir’s friend, but only his servant. They start to beat up Hassan as Amir crouches behind a wall, watching because he is too scared to step in to help Hassan.
Assef then sodomizes Hassan as his friends hold him down. Amir has one last chance to stand up for Hassan before this terrible hurt is inflicted on him. Instead, he runs terrified at what he saw. As he runs, he convinces himself that this is the price he has to pay to win Baba's affection. He later meets Hassan and pretends he doesn’t know what happened. Hassan gives Amir the kite, and Amir wonders if Hassan knows that Amir saw what he saw. Amir gives the kite to Baba, who is proud of Amir. He buries his face into his father’s chest and weeps, and for that moment he can forget what he has done.