Po, now as the Dragon Warrior, helps his adoptive father, Mr. Ping, and biological father Li Shan, to open their new restaurant as Master Shifu arrives to tell him that he must advance and become the spiritual leader of the Valley of Peace. This means Po can no longer be the Dragon Warrior and must find a suitable candidate to take his place. Po struggles to choose the right candidate, but then he catches a fox bandit named Zhen trying to steal ancient weapons. He sends her to prison, but he soon learns that Tai Lung has returned and destroyed an entire village. Zhen reveals that Tai Lung's return was masqueraded by the Chameleon, a powerful sorceress who can shape-shift into any animal she wants. Po heads to Juniper City with Zhen to take down the Chameleon. However, they are arrested and eventually escape to the Den of Thieves. There, Po and Zhen head to the Chameleon's lair, but it is revealed that Zhen has been working for the Chameleon all along and betrays Po. She gives the Chameleon Po's staff, which has the power to bridge the gap through the Spirit Realm. The Chameleon uses the staff to summon every martial arts master to steal their kung fu, including Tai Lung, Lord Shen and General Kai.
