When the White Council was formed at approximately year 2463 of the Third Age, Saruman was appointed its leader, though Galadriel wanted Gandalf in this position. Saruman refused to step down due to his pride, while Gandalf had declined. At this point Saruman had begun to sense the resurgence of Sauron and to envy and desire his power, and especially his One Ring. This was also the same year that the One Ring was taken by the halfling Smeágol (later called Gollum), who disappeared with it into the Misty Mountains for hundreds of years.

It was during the meetings of the Council that Saruman first noted Gandalf's interest in Hobbits and The Shire, and believing that all his deeds related to some as yet undisclosed plan of his for self enhancement, Saruman himself began keeping a greater watch on Gandalf and sent spies to The Shire. At first he himself visited it secretly but stopped when he realized that he had been noticed by its inhabitants. Amongst the purposes of his visits was to procure some of the halfling's leaf, since in secret imitation of Gandalf he had begun to smoke.

In the year 2759 T.A., Saruman settled in Isengard with the permission of the Steward of Gondor, Beren. The stronghold was by then abandoned by Gondor, although he settled only as Warden of the Tower and representative of the Steward. There he became important in the informal alliance defending the west of Middle-earth. In the tower of Isengard, Orthanc, he also found one of the remaining palantíri.

In 2850 T.A., Gandalf entered Dol Guldur and confirmed that the evil presence was indeed Sauron. By Saruman's advice, the White Council decided against attacking Dol Guldur. Gandalf would later remark that it was at this council-meeting that he first began to suspect that Saruman desired to possess the One Ring. Saruman's real intention was to permit Sauron to build up his strength, so that the One Ring would reveal itself. He later found that Sauron had more knowledge of the possible location of the One Ring than he expected, and in 2941 T.A., he finally agreed to attack Dol Guldur.

Ten years after Sauron abandoned Dol Guldur, he returned to Mordor and declared himself openly. He established contact with Saruman through the palantír captured from Minas Ithil, now Minas Morgul.

In this years also Saruman took Isengard for his own and began play guitar with a power/black metal band from North. That terrible sound fortified Evil...and, in a little time, blackened was the Earth...