Chapter 1 of The Master Puppeteer sets up the inciting action and establishes the upcoming conflict. Jiro's life is revealed as well as the hatred Isako feels for Jiro because Jiro has survived. It is also revealed that Hanji has special puppeteering powers and that there is a mysterious bandit named Saburo.
Chapter 2 develops the plot (story) line as Hanji sells his puppet to Yoshida who offers to take Jiro as an apprentice puppeteer. It is revealed that Jiro humiliates his father by accepting an offer to eat and his parents talk about the apprenticeship offer and about Hanaza.
Chapter 3 adds twists and conflict when Saburo the bandit outwits the wealthy and Jiro outwits his parents and secretly leaves home to go to Hanaza to become a puppeteer apprentice.