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Kakashi Hatake is introduced as the leader in charge of Team 7, a new ninja team team including Naruto Uzumaki, Sasuke Uchiha and Sakura Haruno.
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In the story, Kakashi is the leader and teacher of Team 7, consisting of the series' primary characters, Sasuke Uchiha, Sakura Haruno, and Naruto Uzumaki.
Naruto Uzumaki, Kakashi Hatake, Sakura Haruno, and Rock Lee are assigned to protect the prince of the Land of the Moon, Michiru, during his world trip; other escorts had been hired, but quit due to being treated poorly.
The movie stars Naruto Uzumaki, Shikamaru Nara, and Sakura Haruno as they deliver a lost pet ferret (that Naruto unwittingly confuses for a cat, as he had never seen a ferret before) to its village.
Feeling that his outstanding abilities, that caused others to call him a "genius", are more special than theirs, he is initially unwilling to cooperate with Sakura Haruno and Naruto Uzumaki, but later starts seeing them as useful.
In this film, he aids Naruto Uzumaki and Sakura Haruno in fighting against Haido, a utopian idealist seeking to rule the world with a power called Gelel.