The story begins with Yuno, the third son of the renowned Astario knight family, entering the prestigious Ferris Magic Knight Academy. Despite his family's legacy of producing Sword Saints, Yuno is notoriously inept at both magic and swordsmanship, making his admission a source of widespread disbelief and scorn from his classmates, particularly a portly student named Maro. Yuno, however, is unfazed, having made a contract with a god named Zeus at birth, which granted him immense power he struggles to control. This hidden power inadvertently led to him being hailed as a hero by his elder sister, Ray, the current strongest knight, and ultimately, his father's decision to expel him from the family. To save Yuno from disgrace and prove his talent, Ray wagered her life on his successful admission to the academy. Yuno, though initially planning to live a quiet life, was moved by his sister's sacrifice and resolved to enter the academy.
Upon entering the classroom, Yuno is immediately confronted by Maro and his classmates, who question his presence. Yuno reveals his admission was legitimate, having achieved a perfect score on the written exam despite a poor practical score. His childhood friend, Alice, defends him, highlighting Maro's own barely-passing score. Maro retaliates by spreading rumors about Alice's affection for Yuno, shifting the hostility towards her. Just as Yuno decides to withdraw to protect Alice, the homeroom teacher, Soleil, arrives. Soleil confirms Yuno's admission and reveals the academy's rules, including the abolition of social status within the academy and the importance of carefully choosing a god to contract with.
Soleil then introduces a "Noragami" (a nameless, weak god) to the class as a cautionary tale about the consequences of poorly chosen contracts. The Noragami, a young girl with red eyes, explains the rules of contracting with gods, emphasizing the importance of asking for their name. Maro cruelly mocks her, calling her the "Mugodagami" (useless god), crushing her hopes. Witnessing this, Yuno, enraged by the disrespect shown to a god, steps forward and contracts with her, bestowing upon her the name Athena. This act immediately elevates Yuno's status, making him a subject of gossip and curiosity.
Following his contract with Athena, Yuno becomes a minor celebrity at the academy, known for his violent outburst against Maro and his subsequent ten consecutive victories in mock battles. While his reputation as a troublemaker grows, Athena's fame also increases, allowing her to manifest minor divine powers. The academy then announces a new curriculum: students will become knights to protect students from the neighboring Holy Ferris Girls' Academy. Yuno, initially excited by the prospect of interacting with noble ladies, finds himself ostracized due to his reputation, with even Alice, who has a predetermined partner, unable to help him.
During the selection process for knights, Yuno is rejected by many noblewomen, including two he had previously spoken to, due to his poor reputation and perceived incompetence. He witnesses the arrival of Luna Flame, a reclusive daughter of the powerful Flame Duke family, who is known for her aloofness. Luna, surprisingly, chooses Maro as her knight, much to everyone's shock. Meanwhile, Yuno, feeling dejected, is encouraged by Athena, who volunteers to be his "princess." This inspires Yuno to boldly declare his desire for a knight, leading to a brief interaction with a girl named Ain. However, their moment is interrupted by the dramatic entrance of Luna, who, despite her reclusive nature, has decided to participate in the knight selection. Luna, after a tense exchange with Alice and the popular student Crime, unexpectedly calls out Maro, who then proudly accepts her offer.
Later, during the knight selection at the Holy Ferris Girls' Academy, Yuno finds himself alone and unnoticed, while Alice and Crime are highly sought after. Athena, seeing Yuno's despair, bravely offers to be his "princess," prompting Yuno to publicly declare his desire for a knight. This leads to Ain approaching him, and as Yuno is about to propose, the doors to the hall open, revealing Luna Flame, whose arrival causes a stir. Luna, a member of one of the four great noble families, is known for her reclusiveness. Alice, also from a prominent family, reveals her connection to Luna, and Luna, after a brief interaction with Alice and Crime, unexpectedly calls out Maro, who then accepts her offer. The chapter ends with Yuno feeling increasingly isolated and bewildered by the unfolding events.