Having vanquished Devraj Indra and the other Devas, Bali places their crowns at the feet of his guru Sukracharya who is grateful to him. Sukracharya reminds Bali that his great grandfather also bad done so but returned it back to Devas. Vishnu blames the Devas for their clamity. Aditi - the mother of the Devas visits sage Kashyap and her sister Diti but to no avail. Narad visits Lord Vishnu to seek answers.
Bali is furious to learn that the Devas are still worshipped by Manavloke and decides to invade Earth. Narad gives this news to Prahlad. Laxmi warns Bali of the consequences. But Bali remains adamant and invades Earth. The Devas plead to Aditi for help. Aditi pleads to Lord Vishnu who agrees to pardon the Devas and punish Bali for invading Earth.
Lord Vishnu is born as \'Vaman Avtar\' (a dwarf) to Aditi. During the ceremony in presence of the gods the meaning of \'sacred thread\' and \'Bhiksha\' is explained. Lord Vishnu pardons Indra and the other gods but only if they remain humble and considerate. Lord Vishnu as Vaman goes to Bali and asks for three paces of land. Bali is amused but Guru Sukracharya is suspicious. Bali grants Vaman his wish who turns into a \'urugyu\', his legs stretched beyond the abyss and his head rose above the clouds. Bali is overwhelmed by humility and bows to Lord Vishnu for not recognizing him. Lord Vishnu grants him salvation.
Lord Vishnu tells Bali that while he was charitable and good to his subjects but he had become proud and arrogant and it was necessary to teach him a lesson. Bali is grateful to Lord Vishnu and Goddess Laxmi. Dharti concludes Bali\'s story and introduces the next one of Lord Vishnu as Parasuram. It was a time for the supremacy of the Brahmas and the Ashrams were flourishing Kshastri kings started to resent the Ashrams.
King Saharsra appear before the Rishis for hitting Saint Jumdagini\'s son. He accuses the boy for obstructin his path. Rishis remind him that the land once donated belongs to the Ashram and he is forced to apologize to the little boy. Annoyed he meets with the other kings to control the power of the Ashrams by taxing them and stopping aid