Link left the Sanctuary, and traveled across Hyrule to Kakariko Village. Along the way he dodged and sneaked past soldiers. He saw signs that said he was wanted for kidnapping Zelda. When he reached the village, a few women raised the alarm, but Link easily fought off the brainwashed soldiers. Everyone else still thought Link was innocent, and gave Link information. But Link found the elder's house deserted. A kid nearby told Link a secret not meant for bad guys to hear: the old man had gone to the palace beyond the castle. After getting directions, Link left Kakariko Village and headed east.

Link reached the East Palace, and entered a dwelling. Inside, an old man told Link that he was indeed Sahasrahla, village elder and descendant of the seven sages. Link told him about his quest to retrieve the Master Sword and defeat Agahnim. Sahasrahla was astonished:

Link, I am surprised a young man like you is searching for the sword of evil's bane. Not just anyone can use that weapon. Legends say only the Hero who has won the three Pendants can wield the sword.

As a test, Sahasrahla asked Link obtain the Pendant of Courage from the East Palace. In return, he promised to tell Link more of the legend and give him a magical artifact.

Sneaking past Armos Knights and Octoroks, Link found the entrance to the East Palace. Link solved the mysteries, and recovered an ancient artifact: the bow. With this weapon Link could defeat armored enemies. Link still hadn't found the Pendant, and searched harder. With a Big Key he entered the lair of six huge Armos Knights. They circled and charged Link, threatening to crush him, but Link fought back and defeated the heartless stone monstrosities.

Clutching the green Pendant of Courage, Link went back to Sahasrahla's hiding place. Sahasrahla was impressed by Link's courage and skill, and told Link more about the legends of early Hyrule:

Several generations ago, an order of knights protected the royalty of the Hylia. These Knights of Hyrule were also guardians of the Pendant of Courage. Unfortunately, most of them were destroyed in the great war against evil that took place when the seven sages created their seal. Among the descendants of the Knights of Hyrule a hero must appear.

Sahasrahla believed Link to be the hero of legend, and gave him an artifact that had been passed down in the families of the sages: the Pegasus Boots. With these magical shoes, Link could run faster and charge enemies with his sword. Sahasrahla marked Link's map, directing him to the two other Pendants of Virtue.