Po and the Kids are put to the ultimate test, and must use all their knowledge and skills in order to defeat The White Bone Demon.

Feeling a little bored with their new hero life, Po and the kids are excited to accept an important invitation to the Forbidden City. Meanwhile, there's a curious disturbance deep in Panda Village.

The whole gang escapes pursing Guards, battles flowing lava, and survives crumbling caves and pillars to finally make it back to the Forbidden City. Xiao is ready to escape the palace, but Shi Long has other plans for her.

Po and the Kids take a shortcut to the boat bound for the Forbidden City, and are waylaid by a tricky monkey. Zhizhu informs Mayor Li of some distressing sounds coming from the Wellspring.

When Po and eventually the kids finally make it on the Riverboat, they discover old friends, new enemies, and perplexing cargo.

Po and the Kids are once more waylaid, this time by Mole Rats who have deemed Bao their god. But when Bao isn't able to defeat the mythical creature plaguing the Wasteland, Fan Tong steps up to save the day.

Po and the Kids make it to Gongmen City in search of the contact they heard has some info on the dirigible crash. Meanwhile, Xiao, mourning the presumed death of her new panda friends, takes off into the woods and meets a new friend.

Po and the Kids finally arrive in the Forbidden City. After an assassination scare, Xiao enlists Po and the Four Constellations for help protecting her during her father's funeral.

Po and the Kids agree to escort a dirigible shipment of food to a drought-torn region of China. But Nu Hai has some suspicions about Shi Long, which she finds aren't far off when she discovers the dirigible is set to explode...with them on board!

In a giant sea battle, Po and the Kids manage to escape the pursuing police to make it to Volcano island and get some answers. Empress Xiao begins learning how to defend herself.

When things don't quite go according to plan, Po and the Kids must rally with other allies to save the Empress and protect China.

On the Volcano Island, Po and the Kids are reunited with Li, Grandma, Ping, Rooster, Wing, and Wong, and work together to find out what's really going on the island. Xiao becomes suspicious of some of her royal workers.

The gang learns of even bigger and direr forces working against the Empress and the Kingdom of China, and must come up with a plan to put a stop to it before it is too late.