Tchang Zu's demon chi is located in the ruins of the Titanic. Jackie, Jade, Tohru, and Uncle, ridden with the flu, journey into the murky depths of the wreck to find it, but Drago has followed them. Things aren't helped when Jackie suffers from being down in the cold water for too long and he loses all grip of his senses...

After fully absorbing the chi of Tchang Zu, Drago sets out to magnify the power of the thunder chi by turning his new lair, Seattle’s Space Needle into his own personal electrical rod. Uncle reveals that the longer that Drago has the demon chi, it will become even more difficult for him to remove it.

The chi of the mountain demon, Po Kong is released after Tohru has a midnight snack whilst on a diet.

Drago succeeds in capturing Jackie, Uncle, and Captain Black. He holds them for ransom in order to get the prize that he so desperately wants, the Chi containment unit. With the lives of their loved ones hanging in the balance, Jade and Tohru confront Drago and turn to an old enemy for research. It appears that Jade and Tohru aren't the only ones hoping to double-cross the son of Shendu.

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.