In the Jundland Wastes, a group of Sandpeople prepares to descend upon Luke. They are frightened off by the strange sounds being admitted by an elderly man coming up over the horizon. The man helps Luke to his feet and Luke asks him he is related to someone named Obi-Wan Kenobi. The man admits that he is Obi-Wan and Luke tells him that his astromech droid R2-D2 claimed that it was his property. Obi-Wan has no recollection of ever owning a droid, but invites Luke, R2 and the protocol droid C-3P0 back to his dwelling. R2 plays a holographic message intended for Obi-Wan's attention. The image is of Princess Leia who calls upon Obi-Wan's history as a veteran warrior to help her Rebel Alliance in their "desperate hour". After the message concludes, Obi-Wan tells Luke that like his father, he was once a member of the august body known as the Jedi Order. He gives Luke his father's lightsaber. Luke asks Obi-Wan how his father died and the old man tells him that a former pupil of his named Darth Vader betrayed and murdered his father. Obi-Wan wants Luke to accompany him to Leia's home planet of Alderaan, but Luke cannot shirk his responsibilities to the farm.

On their way back to the Lars homestead, the group comes upon the ruins of a Jawa Sandcrawler. There are dead Jawas scattered about and Obi-Wan quickly deduces that it was Imperial Stormtroopers who had killed them. Realizing that the Stormtroopers were looking for the droids, Luke races back home, but he is too late. The house is in smoking ruins and his aunt and uncle are dead. With nothing left to keep him on Tatooine, Luke says that he will help Obi-Wan.

Luke, Obi-Wan and the droids take Luke's landspeeder to the space port known as Mos Eisley. Obi-Wan is confident that they will be able to find a pilot willing to take them to Alderaan. They go into a cantina and almost immediately, two aliens begin bullying Luke. As the situation turns violent, Obi-Wan ignites his own lightsaber and cuts the offenders down. Afterward, they meet a Corellian smuggler named Han Solo and his first mate, Chewbacca, the Wookiee. After a hasty bit of bartering, Solo agrees to fly them to Alderaan. To help finance Han's fees, Luke and Obi-Wan go out into the market place to sell Luke's speeder. Han meanwhile, has a run-in with a bounty hunter named Greedo. The meeting is short and ends with a blaster shot to Greedo's chest.

Leaving the cantina, Han runs into Greedo's employer - Jabba the Hut. Jabba is disheartened that Han killed Greedo and reminds him that he owes him substantial reimbursement for dumping a load of Jabba's illegal spice.

Meanwhile on the Death Star, Darth Vader subjects Princess Leia to interrogation. She proves resistant to the mind probe so Grand Moff Tarkin decides to give her a more proper incentive for cooperating; he sets course for Alderaan.

Back on Tatooine, a spy informs a Stormtrooper patrol of the droid's whereabouts and they track them to Luke, Han and Obi-Wan at Docking Bay 94. A fire fight breaks out, but they manage to get onto Han's ship The Millennium Falcon and blast off. The ship breaks through an Imperial blockade and they jump into hyper-space.

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