Jackie must steal the next Talisman of Invisibility from a museum before the Dark Hand does, but when he was in the building, Jade followed him, and a thief was also inside the building trying to steal a jewel, and the talisman mistakenly ends up in the hands of jewel thief The Viper instead and Jackie was arrested because he had the jewel.

The Dark Hand goes hunting for the legendary Pan'ku Box which will lead them to the eight Demon Portals. Knowing that the Dark Hand is too strong with the Talismans for Jackie and Uncle to handle alone, Jade recruits El Toro Fuerte and Viper, along with the reformed Tohru, to form the J-Team.

Jade, Uncle, and Jackie escape from Shendu's palace with a few talismans taken from Shendu. Using Jade's memories of the Immortal symbols, they embark on a mission to find the other members of the J-Team and manage to banish half of the Demons in the process. Realizing what has transpired, Shendu and the other three remaining Demons make a final stand at Australia to prevent history from being corrected.

Daolon Wong has captured Santa Claus, who possess good chi in abundance, on Christmas Eve. Jackie, Jade, Uncle prepare for Christmas, with Uncle and Capt. Black trying to convince Jade that Santa is real. An Elf comes to Uncle for help in locating the kidnapped Santa. El Toro and Viper are called into action to help. Tohru, Jade and Paco substitue for Santa in making deliverys that night while Jackie, El Toro and Viper free Santa. Jackie and company go up against Daolon and his evil animated snowmen. Tohru makes a 'nick-of-time' rescue in the sleigh, and is humbled to be sitting beside the Jolly Ol' Elf himself. It's a Merrry Christmas for our heros!

The J-Team attends the re-dedication of the San Francisco Museum's collection of Jade (the stone, not the niece) and when the collection disappears again, Viper is accused of the theft. El Toro is later caught in the act of stealing more jade. Jackie chases the masked man and Jade discovers that the theif is A CLONE! Capt. Black interviews Chang (who is in prison) and they discover that Chang is also a clone. The real Chang, and his alchemist Yip, watche from a hidden lair, sending the Jackie clone into Section 13. Jackie-Clone is not able to subdue and replace the real Jackie and flees before being captured. Uncle creates a magic power that will determine who is a clone and who is not - and they discover that Paco is a clone! Impersonating their clones, the J-Team infiltrates Chang's hideouts to rescue Paco. Detected, the J-Team is attacked by the J-Team-clones but Uncle finds a way to over-ride the magic clones and turn them on Chang and Yip.

Jackie and Daolon Wong literally race against time to retrieve the Déjà  vu stone, which is responsible for their trip into the past. Uncle attempts to help Jackie from the present as he and Jade watch what is happening through a time window. As Jade watches, she begins to wonder whether she is responsible for all the problems that has been happening in Jackie's life.

Jackie, Uncle, Tohru, and Jade discover that they have overlook something in the ancient writings by making the horrible mistake of placing the final oni mask along side the other eight in Section 13. By doing this, they have released Tarakudo and his generals from the masks that bind them. The entire world begins to be engulfed in total darkness as the shadokahn are now free to walk the earth.

Captain Black, the J-Team, and some old adversaries put their differences aside to come together in order to stop Drago who is on the verge of conquering the entire world.