The scene would have happened early in A New Hope. It begins by introducing Luke to his aunt and uncle’s farm working on a moisture evaporator when he notices the battle between Darth Vader’s (David Prowse/James Earl Jones) Star Destroyer and Princess Leia’s (Carrie Fisher) blockade runner, which is in Tatooine’s orbit takes place.
Luke then speeds to the nearby town of Tosche Station. There he meets a group of his friends Camie and Fixer – although it’s clear they find Luke a bit annoying. Camie even calls him by his unflattering nickname, “Wurmy.” He also meets his best buddy, Biggs Darklighter (Garrick Hagon), who was at Imperial Starfighter Academy. Luke is happy to see his friend, but also jealous that Biggs was also able to escape home from their desert planet. Luke even wishes he could join the Empire like Biggs did. Later in the scene, however, Biggs admits to Luke that he plans to defect to the Rebel Alliance. That only makes Luke more jealous.
According to Hamill, the scene shows a few things about Luke’s character: First, that he’s not particularly popular with his friends. And second, that Luke is willing to join the Empire to escape Tatooine. “It shows that Luke is apolitical, and actually he’s attracted to joining the Empire,” Hamill explained.