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Mr. Ping has a new charity auction for a new childrens hospital, and convinces Po and the Furious Five to help him out. During the auction, Fenghuang attacks and it ends up with Crane getting humiliated, by getting stuck in a wall. Po finds out Iron is the only thing that Fenghuang's talons can't cut through and they injure her talons using iron items, which drives her to the mountains. When the Furious Five and Po find out Fenghuang is in the mountains they go to try and defeat her except for Crane who stays behind. When they face Fenghuang she defeats them all but Po, who is having great trouble bringing her down.
Meanwhile, Zeng encourages Crane to help the others, and Crane battles Fenghuang in the sky over the Valley of Peace, and soon Po and Crane defeat her. Mr. Ping opens his new hospital and Crane is the first customer thanks to his allergies.