When you exit the forest, you see Aryll on the opposite side of the bridge. She waves at you, then begins to cross the bridge. As she reaches the halfway point, the massive bird from earlier snatches her away. Link, in what I see as anger, unsheathes his sword and begins to run after the bird - forgetting he is on a cliff! He falls, but Tetra saves him in the nick of time (can’t have the main character die this early!).
You find Link, Tetra, and the pirate flunky from earlier (Gonzo) at the beach. It seems that Link has asked to go with the pirates to find his sister. Tetra completely refuses, and the Rito postman butts in.
He mentions that, had the pirates not come in the first place, the bird wouldn’t have either, and would consequentially have not taken Aryll in Tetra’s place. But why DID Aryll get taken? The bird kidnaps long-eared girls. Both Aryll and Tetra are like this, and look quite similar. It is quite obvious the two were mixed-up by the bird. Anyhow…
When you enter the house and climb upstairs, you find the shield to be gone! Did someone steal it? Go downstairs. You end up finding Grandma holding the shield. She knows what has happened, and understands why you need to use it. She gives you the Hero’s Shield and comes quite upset. Head back to Tetra.
Once you talk to her, confirm that you are now leaving Outset. The ship begins to set off, with everyone, even Grandma, waving good-bye to Link from the shore. After several minutes of this, Tetra interrupts this moment and taunts you on being so sentimental. She then orders you to find a pirate by the name of Niko below deck.