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The village was a paradise of rolling hills, bamboo forests, and pandas who spent most of their time napping or eating—Po’s two favorite activities. Li Shan taught Po the "ways of the panda," which mostly involved rolling instead of walking and mastering the art of the midday snack. For the first time in his life, Po didn't feel like a misfit; he felt like he truly belonged.

However, the peace was short-lived. An ancient spirit warrior named Kai had returned from the Spirit Realm, intent on stealing the Chi of every Kung Fu master in China. Kai was a jade-clad nightmare, wielding glowing green blades and leading an army of "Jombies"—jade statues of the masters he had already defeated.

The valley of peace was buzzing with a strange energy, the kind that usually meant Po was about to accidentally destroy a historical artifact. But this time, it was different. Po had finally found his biological father, Li Shan, and the secret panda village hidden deep in the misty mountains.