Drago breaks out of Section 13 on a mission to absorb the demon chi that is held in the original artifacts used to defeat the demons so many years ago. He finds the Enforcers at a petting zoo and transforms them into dragon-human hybrids. Drago locates the fan that holds the chi of the Wind Demon

Uncle has fashioned a locater for the activated relics. As Jade watched a game show called, ""The International Island Challenge,"" the locater senses the next relic, which is the prize on the game show: the gourd containing the Water Demon's chi. Jade pleads Jackie to let them enter the contest held on Boru Island, but Jackie explains that this is a serious mission

Jade's hopes of a birthday celebration are dashed when Drago's failed attempt at stealing the recovered two demon chis puts everyone on high alert at Section 13. The postponement of her birthday continues when two demons' chis, earth and moon, are activated within the same day. It is a race against time as Jackie, Uncle, Tohru, and Jade attempt to stop Drago, his new henchmen, Strikemaster Ice and his gang from acquiring the power of the two chis

The Enforcers are released from prison and are required to finish off their sentence by doing community service. Jackie begins tailing them, watching their every move. They have become suspects in his investigation into the failed attempt by three unknown assailants to steal the valuable golden squid, which is being showcased at the museum

After capturing the chi of Hsi Wu, the sky demon, Uncle attempts to place it in the chi containment unit. However it is broken, so the chi must remain in the chi-o-matic. Thinking that it is empty, Jade then takes Uncle's chi contraption with her on a school field trip to a haunted doorknob museum

Jackie and the gang visit the ancestral home of the Chans in China (now mostly underwater). There, they accidentally release three demon spirits that transform their bodies into the physical embodiment of their fears

The Demon Chi briefly escapes from the Containment Unit. All of them are retrieved, except for the Earth Demon chi, which flees Section 13 and inhabits the body of one of Jades' Friends Larry (a comic book nerd, who also loves Super Moose) who proceeds to use his new demon powers for good as the superhero Spectacularry. Unfortunately he causes more problems than he solves

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

A dark Chi-Wizard from the future called Iso travels to the past to steal one half of an ancient relic from Section 13. Unbeknownst to Iso, Jade follows him through a time portal on his return trip to the future and runs into her older self. Young Jade is shocked and disappointed to learn that adult Jade has so easily accepted the punishment of being demoted from field agent to desk duty at Section 13

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

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