Cinder continues his training on the Shatterspin ability and mocks Jordana. Euphrasia is imprisoned with Vengestone. Back at the Monastery, Nya looks through Master Wu's notes seeking to find information on the Forbidden Five but finds nothing. Lloyd has a vision of the Source Dragons who show him a vision of a mysterious dragon master. Wyldfyre is depressed due to her injury and sneaks on the Destiny's Bounty. The Ninja arrive in the Phantasm Cave where they face their greatest fears. The Ninja escape and find the master they are looking for.

The Finders are ambushed by the Wolf Masks who want to capture Bonzle. The Ninja fight with Egalt but find out it was a test to see if they are worthy. The Dragon Masters, Rontu and Egalt agree to help the Ninja learn the Rising Dragon Technique to stop Shatterspin. The Dragon Masters tell their story of how they defeated the Forbidden Five. Cole arrives in the Land of Lost Things and saves the Finders with the help of a portal gate, but the Wolf Masks have followed them.

Ras enacts the Ritual of the Blood Moon as he has now captured Bonzle. The Ninja fight against Ras with the help of the Rising Dragon Technique. Ras manages to free one of the Forbidden Five by sacrificing Kai. The portal is closed by the Ninja but Lloyd and Bonzle are trapped. Ras sets a new plan in motion to take over the Tournament of the Sources.