The Dark Hand, with the power of the Talismans, goes on a crime spree. Although Jackie is eager to leave Section 13 behind, he agrees to help them one last time against the Dark Hand. Meanwhile, Shendu escapes back to the real world and tries to possess Jackie but accidentally possesses Valmont instead.
Plot
It starts on a rainy day at the fishing wharf, a.k.a. the Dark Hand's new hideout. Valmont is giving out the talismans that they stole from Shendu's collapsed palace. Meanwhile, Jackie and Jade are moving back to Uncle's shop, much to Jade's disapproval. Unfortunately, because of Tohru's turn to the good side, he is living at the shop, leaving no room for Jackie and Jade. So Jackie and Jade are forced to move back into Section 13 -- just in time for Capt. Black to announce to Jackie that the Dark Hand is attacking the financial district, and they are wielding the talismans.
Meanwhile, Shendu (now a disembodied spirit) is planning his revenge, but it is revealed that he is currently in another dimension and at the mercy of his siblings, who are angry with him for never even trying to free them. They intend to torture him eternally with the pain of their elemental powers. Shendu then promises his demon brothers and sisters he will free them by possessing a human body -- specifically, Jackie. They accept charging him with this task, and to be sure they can keep tabs on him, they enchant him so that his spirit will remain in the human he possesses. If he crosses them, his torture will resume.
The Enforcers are robbing an armored truck and overpowering the police, with Hak Foo having taken over Tohru's position as the Dark Hand's new lieutenant. Each has been given three talismans. (Hak Foo, however, feels no need to rely on the Rooster, Horse and Dog, so he swaps them to Finn, who was stuck with the Sheep, Rat and Tiger.) Section 13 quickly arrives, but they are easily defeated by each of the Enforcers. Jackie, wanting to get on with his ordinary life, chases after the Dark Hand. He, Jade, and Capt. Black manage to get their getaway car to crash on a beach, and while Jackie is off to the side of the fight watching for Jade's safety, Shendu appears and swoops to possess him. However, Valmont has also snuck up to seize the chance to kick Jackie off the cliff on which he is standing, and he does so moments before Shendu arrives. Jackie lands relatively safely, but Shendu is miserably frustrated to find that he is trapped in the body of his despised former ally.
Just when Hak Foo and the other Enforcers have disabled their opponents, their are called away from the loot by what seems to be Valmont. Not until they are back at their hideout does Shendu reveal himself and his objective. (He adds that they might as well keep the talismans, as they won't help him.) That night, possessed-Valmont comes to the shop, knocking out Uncle and throwing Tohru headlong into the bookshelves, knocking him out too. Focused on searching the crumpled shelves, he does not notice Jade call for help. Jackie and Capt. Black pull up front and she tells them what happened. But even as they enter, Valmont flees the shop with a book in hand. Atop a building, they are suprised to see the Shadowkhan appear, as Shendu is the one who commands them, not Valmont. But this is explained when they hear the voice of Shendu come from Valmont, revealing his return. He strides away, giving the order for his scores of minions to destroy them.