In the Chinese Spirit Realm, Grand Master Oogway fights against Kai and has his chi stolen. Grand Master Oogway warns Kai that Po, the Dragon Warrior, will stop him.

Meanwhile, Master Shifu announces his retirement and passes the role of teacher to Po. He discovers that teaching kung fu is not easy, as the Furious Five members Master Tigress, Master Crane, Master Mantis, Master Viper, and Master Monkey are injured as a result. Po is demoralized as a teacher, but is told by Master Shifu to be himself.