Yugi challenged Saruwatari to a Duel, during Duelist Kingdom, in order to retrieve the Star Chips confiscated by Saruwatari. Since Saruwatari did not play games himself, he arranged for the ventriloquist to face Yugi instead.
At first, Yugi saw the puppet as an insult and mockery to Kaiba and was infuriated, but when the ventriloquist, using Kaiba's stolen Deck and having the puppet play the cards out, summoned the first of the three "Blue-Eyes White Dragon", and then claiming that the puppet was carrying a part of Kaiba's soul and sought revenge, Yugi began to worry that Kaiba has forsaken the given second chance, and instead sold his own soul for revenge and that the two of them would forever be archenemies. Speaking through the puppet with a stuttering and sadistic tone, its disturbing presence gave the Ventriloquist the upper hand as Yugi's confidence and concentration was weakened.
Yugi defeated the first "Blue-Eyes" using "Dark Magician", "Magical Hats" and "Spellbinding Circle". Far away from the Duel, Kaiba woke from his coma, after the ventriloquist Summoned the second "Blue-Eyes". The Dragon refused to attack Yugi and disappeared, since Kaiba's will was inside the card. Reviving the second "Blue-Eyes" with "Monster Reborn" and increasing its ATK, Yugi defeated the third "Blue-Eyes" and won the Duel.
After losing, Dark Yugi, furious that the ventriloquist stole Kaiba's cards and toyed with his soul with a puppet, inflicted a Penalty Game on him, where he believed a puppet of himself was attacking him.