In the season's opener, we meet the lovely Lina Inverse. She's just stolen a few treasures from a couple of bandits called the "Dragon Fangs" after using the "fireball" spell.

The next day, Lina is hunted down by some of the bandits from whom she has stolen. A guy talks to her while the rest are lying in wait to attack her. Just when she is about to fight, a tall, blond guy named Gourry comes to her rescue, despite the fact that she could of handle it herself easily. Gourry is disappointed that the girl he saved looks like an underdeveloped girl, but he invites himself along with Lina to the next town of Atlas City.

Once there, they eat at a restaurant. A village elder approaches Lina, and asks if it's really her, the great sorceress Lina Inverse. Lina smiles and says yes. Gourry is surprised to learn that Lina is a sorceress, because he thought with the clothes she is wearing, she would be some kind of waitress of fishmonger.

The elder interrupts and asks about the bandits that have been hitting their town. Lina tells him about beating the Dragon Fangs. The elder is surprised, and Lina tells him that Gourry beat the rest of them off before heading into the town. The elder is shocked to see that they (or Lina) killed the black dragon. He runs out of the restaurant excited telling everyone that the black dragon has been killed.

Gourry then asks Lina if she killed the dragon. Lina tells him no, because she didn't know they had one. Gourry asks what they are going to do about the dragon. Lina asks if he wants to go hunting for a dragon, who knows where. Right at that moment, the dragon flies over their town. The village elder comes running in and asks them, "You didn't kill the black dragon?! What's the meaning of this?"

Lina responds that she killed the Dragon Fangs, not the dragon. Lina asks how much are they willing to pay her to kill the dragon. The elder tries to reason with Lina, but she drives a hard bargin. They run out to the dragon, where the elder explains that the boss, when he was little, bought the dragon at a festival for three bronze pieces, and grew from time to time.

Lina throws a fireball to the dragon which had no effect. Lina is about to do something else but Gourry runs and takes out his sword. He gets hit by the dragon's tail instead and falls on top of Lina. Lina panics, and an unconscious Gourry doesn't move as the dragon comes stomping their way. When the dragon is about to stomp them, he becomes distracted and misses them, and simply stomps away to another part of the town.

Lina is upset that dragon embrassed her, and uses her levitation spell. She tells Gourry to distract the dragon while she chants a spell. Lina kicks Gourry to the dragon, and with his sword catches the dragon by it's nose. Gourry runs from the dragon, as Lina casts her "Dragon Slave" that not only kills the dragon but destroys the whole town.

The elder appears out of the wreckage, and Lina asks about the payment. Both the elder and the other townsfolk respond along the lines of, "Like hell we'll pay after you destroyed our entire town!" Lina tells Gourry to handle it as she runs away. Gourry chuckles, as the whole village looks at him. Gourry to runs away with Lina while the whole village chases them...