After Vaati wins the tournament, he is allowed the honor of touching the sacred Picori Blade.
The Awards Ceremony
Vaati won the tournament, so he gets to touch the sacred Picori Blade. Watch the cut scene.
Afterward, press R to wake Link up, then exit the room. Since Link is still a child and is therefore able to see the Picori people, the King asks Link to reforge the Picori Blade to remove Zelda's curse.
Smith gives Link a map. On it, you can see your next destination: the Deepwood Shrine in the Minish Woods. This is east of Link's house. Leave the castle now and start your journey to the Minish Woods. If you need help using the pause screen, read the section below.
Pause Screen Explained
Here is some information about the controls. First, press Start to view the pause screen.
To switch between screens, press L or R. On the items screen, highlight any item and press A or B to equip it to that button. You do not have anything else to equip yet, but you can switch the sword and shield buttons if you wish. You can save from here as well.
This screen shows you the important quest items, of which there is only the broken Picori Blade so far. Your heart container count is shown on this screen. You can also put your GBA into sleep mode from here, which is a helpful feature that keeps your GBA turned on but in low-power mode until you press L+R+Select simultaneously. Please note that the wake-up sequence of buttons does NOT include the Start button! If you press L+R+Select+Start, the GBA will not wake up.
In Sleep Mode, the batteries will still lose power, but not nearly as quickly as they would if you left the game on pause. This is helpful for times when you want to take a break but you don't want to lose your place in a dungeon.
Outside of dungeons, the Pause Screen map shows you the map of Hyrule. The regions that you can see are the ones that you have visited so far, as well as the Minish Woods with your destination check-marked. You can press A when highlighting any section of the map to see a very detailed closeup view, which is very helpful when seeking treasure in a far-off place. In dungeons, of course, the pause screen map shows the dungeon map instead of the world map, or, if you haven't found the map yet, it shows you the rooms of the dungeon that you have visited.
Continue to the Forest
When you are ready, you should begin your journey to the Minish Woods.