Using the newest Shen-Gong-Wu, Shadow of Fear, Jack enters the Warriors' dreams to bring their deepest and darkest fear to life. With no one guarding the Temple vault, Jack easily steals some Shen-Gong-Wu. Master Fung advises the Warriors that they must face their fear in order to ultimately overcome it. All the while, Jack directs a movie about his adventures with the Warriors.

After trapping Chase Young in the Sphere of Yun, Jack and his newest partner, Cyclops, take over his lair. He then proceeds to attack the Xiaolin Temple, stealing Shen-Gong-Wu from the vault. Omi later frees Chase using the Reversing Mirror, returning the 'favor' he owed him from earlier. The other Warriors do not know Omi freed him. Chase slowly tries to mold Omi into the true evil warrior he knows the young monk will become.

It is Chinese New Year and everyone except Omi receives gifts from their families. In an effort to cheer him up, Master Fung suggests Omi go on a quest to find where he belongs. The Warriors travel to a town where everyone looks exactly like the young monk. There, Omi finally finds his 'parents', though they are not exactly what he expected. Much to his fellow Warriors' dismay, Omi decides to stay with them on their farm. Now with one less warrior at the Xiaolin Temple, Wuya, Hannibal Bean and Jack plot to break into the Temple to steal Shen-Gong-Wu ... However, they do not know that they are being closely watched.