In the spirit realm, Oogway fights against a bull adversary named Kai, who has defeated all the other kung fu masters in the realm and taken their chi.
Oogway too is ensnared and has his chi stolen, but warns Kai that the Dragon Warrior, Po, will stop him. Kai takes this as a challenge to steal the Dragon Warrior’s chi and returns to the mortal realm. Meanwhile, Master Shifu announces his retirement from teaching and passes the role of teacher to Po.
An initially excited Po realizes that teaching kung fu is not as easy as anticipated, and the Furious Five are injured as a result. Po is demoralized because of his failure, but Shifu advises Po that instead of trying to be a teacher, he should try to be himself.
por eturns home where he meets a panda, Li Shan, whom they both realize is his long-lost biological father. They quickly bond with each other, much to the jealousy of Po’s adoptive father, Mr. Ping.