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The Battle of the Valley of Peace was the struggle that marked the end of Tai Lung's journey, and presumably his life as well. The event takes place within the Valley of Peace and is separated into two different battles, one involving Master Shifu and the other involving the Dragon Warrior Po.

Summary

Moments before

As Po and the Furious Five evacuated the Valley after the masters discovered that the Dragon Scroll was blank, while Shifu remained in the Jade Palace to stall Tai Lung for as long as possible in a fight to the death.

The battle at the Jade Palace

Main article: Battle between Shifu and Tai Lung

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Tai Lung delivering a blow to Shifu

When Tai Lung reached the palace, they faced off in a brutal battle in which Shifu and Tai Lung confronted each other over Shifu's perceived betrayal when he did not speak up in his student's defense when Oogway denied him the scroll. The battle ended with Shifu defeated and almost killed by Tai Lung when the snow leopard discovered the scroll missing.

The battle in the streets

Main article: Battle between Po and Tai Lung

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Tai Lung submitting to Po's Wuxi Finger Hold

However, Po returned to the Jade Palace just in time to confront Tai Lung before he finished off Shifu, having figured out the Dragon Scroll's hidden meaning. Tossing Shifu aside, Tai Lung charged at Po and the two faced each other in a battle which brought them both down the stairs and into the village below. After a prolonged battle over the scroll, Tai Lung eventually managed to stun Po long enough to grab the scroll and read its contents; he was horrified to discover it was blank. Po attempted to explain the scroll's meaning to the snow leopard, but Tai Lung only reacted in frustration and furiously attacked Po. However, Po's body fat rendered Tai Lung's nerve attack useless, and the two faced off in another battle which ended with Po capturing the snow leopard in the Wuxi Finger Hold, which defeated Tai Lung and brought peace to the valley.

Aftermath

After witnessing Tai Lung's defeat, the Furious Five and the evacuated villagers returned to the village. Mr. Ping, moved by his son's brave actions, proudly declared to all that the kung fu warrior before him was his son. The Furious Five and the villagers finally accepted Po as the Dragon Warrior.

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