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When Po's friend Peng returns to the Valley of Peace, everyone is excited... except for Po. What no one else knows is that Peng is actually Tai Lung's nephew. Now Po has to admit to Peng that he skadooshed his uncle.
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After Peng beats up a couple of Croc Bandits he asks to see Po. Po tries everything to avoid Peng but he goes on a short journey with him. Peng ask if it's true that he killed his uncle, and a guilty Po admitted it. Enraged, he mercilessly attacks the panda until he falls off a cliff, Peng vows that their battle isn't finished. Shifu had heard the news and was very worried, but he reminds Po that underneath all that flab beats the heart of a hero. Peng somehow stealthily managed to get inside the Jade Palace with his uncle's sword. Though it looks like Peng was going to kill him, he actually wanted to return the sword, claiming he is quitting kung fu. Shortly after Temutai with the Gong Lu Medallion managed to get in and defeat the Furious Five. Po went to talk to Peng and managed to convince him to come back. Together they managed to defeat Temutai. Peng, who slowly had gotten corrupted, puts on the Medallion and his dark emotions rise. He defeats the Furious Five and goes after Po (in a familiar fashion). Po tries to make him understand before he disappears. Peng wishes for his uncle and surprisingly he appears and makes a powerful entrance. Peng is surprised to see him alive and well and explains his wish made him whole again. Now they can destroy Po, their enemies, and EVERYONE!!! Peng seems reluctant about his command. But Tai Lung commits it, saying when "push comes to shove, we shove harder." He attempts to show him by attempting to hurt an innocent goose, but Peng, having second thoughts prevents him from doing so. Tai Lung in vain knocks him over. Now realizing that Tai Lung is truly evil, Peng attacks him. His uncle fights back, but Peng's powers get the best of him. Peng, now seeing what he's become, willingly ditches the medallion. Tai Lung shapeshifts back into Po, revealing it was a trick to make Peng understand. At the Jade Palace, Po gives him his sword, but Peng smashes it and claims he's quitting yet again. He now knows that since he inherited his uncle's skills, he's also inherited some of his raging, ruthless persona. He leaves the Jade Palace while everyone stares sadly about their friends (this is also a cliff hanger.)
- The episode's title references the novel The Master and Margarita by Mikhail Bulgakov, in which one of the characters is a demonic, shape-shifting cat.