The narrator reminisces about a type of man he calls the Handsome Sailor. Men with such a designation tended to be larger, stronger, and more attractive than their peers. Importantly, Handsome Sailors are magnetic and receive attention from everyone around them. Handsome Sailors make people want to follow them. He provides an example of an African Handsome Sailor who had been emulated in Liverpool by many who saw him. The moral and intellectual character of the Handsome Sailor usually matches his physical stature.

The narrator describes Billy Budd as the perfect example of the Handsome Sailor. After entering the British Navy at 21 years old, he is impressed into service on the Bellipotent after being taken off of his ship, the Rights-of-Man. Lieutenant Ratcliffe from the Bellipotent lowers Billy’s rank—and only Billy’s rank—as part of the reassignment, but Billy accepts this without complaint. Captain Graveling, his former commander, disapproves of Billy’s imperturbability.

Billy gathers his equipment on the Rights-of-Man before joining. Captain Graveling rebukes Ratcliffe for taking Billy, before telling a story about how Billy came to his ship. When Billy arrived, Graveling’s men were always fighting. Billy’s influence calmed them all, except for a sailor they called Red Whiskers.