Ozai could tell immediately that his daughter was everything he had hoped for and more. He named her Azula, pandering to his father's ego. He lavished her with the best firebending teachers, the best lessons in military history and tactics. Zuko received only mediocre lessons. Ozai groomed his second child, his second chance, to become the perfect heir to the throne. Fire Nation tradition did not allow women to ascend to the throne, but he had no choice. He had to eliminate Zuko. Ozai was surprised, however, when his 8-year-old daughter approached him one evening and asked why Iroh had to become the next Fire Lord instead of him.

"I just think you'd make a much better Fire Lord than Uncle," Azula commented, toeing the ground meekly. "You're so strong and smart and determined. All Uncle cares about is tea and goofing off." Ozai decided he could trust his favorite child with the truth.

"As a matter of fact, Azula, I plan to become the next Fire Lord," Ozai replied.

"Really?!"

"Yes. Soon, in fact. I think I can persuade Father that I have what it takes to rule this country, and when he names me the heir, I'll see to it that I take the throne immediately."

"You mean kill him," Azula smirked. Ozai was somewhat taken aback at her bluntness.

"How very astute of you, my dear."

"I take after you, Daddy."

Depriving Zuko of a proper education worked exactly as Ozai had hoped. When Ozai learned of Lu Ten's death, he brought his family before his father to demonstrate that he was the more suitable successor. He showed off Azula's intellect and exceptional firebending skill. In comparison, Zuko looked like an utter failure. However, Azulon was not swayed by Ozai's display, and not only did he refuse to revoke Iroh's birthright, he declared that Ozai would be punished for plotting to betray his sibling. He ordered Ozai to surrender Zuko to Iroh's custody, so that he, too, would lose his only son, and any hope of ascending to the throne as well. Ozai was furious.

"Dad's going to kill you," Azula informed Zuko in a sing-song voice. "Really, he is."

"Ha ha, Azula. Nice try," Zuko grumbled.

"Fine, don't believe me. But I heard everything. Grandfather said Dad's punishment should fit his crime. 'You must know the pain of losing a first-born son, by sacrificing your own!'"

"Liar!"

"I'm only telling you for your own good. I know! Maybe you can find a nice Earth Kingdom family to adopt you!"

"Stop it! You're lying! Dad would never do that to me!" Zuko squeezed his eyes shut and clutched his blanket.

"Your father would never do what to you?" Ursa interrupted. "What is going on here?"

"I don't know," Azula lied.

"It's time for a talk!" Ursa ordered, and dragged Azula out of Zuko's room by her wrist. Sitting her down in her own bedroom, Ursa demanded to know what Azula had told Zuko. Azula simply rephrased what she had told Zuko - that Azulon had ordered Ozai to kill Zuko. As Zuko lay in his bed convincing himself that Azula was lying, Ursa rushed to the throne room to change Azulon's mind, and Azula joined her father in a side hallway. They couldn't make out what she was saying to the Fire Lord, but then there was a stifled scream, and Ursa ran out of the throne room. Ozai stopped her.

"Ursa, my dear, what happened? You're shaking..."

"Ozai... oh, Ozai, I've done something terrible!" Her eyes welled up with tears as she wrung her hands. "I think... I think I've killed Fire Lord Azulon!"