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As Shifu, Po, and the Furious Five are overseeing a kung fu camp for children in the Valley of Peace, they are approached by a delegation from the Emperor. As revealed by the emissary Meng Tao, they have brought the Emperor's grandson Lu Kang to be taught by the masters, as he must master the Skills of Manhood if he is to take his place as a true member of the royal family. Unfortunately, Lu proves to be uncoordinated and fairly pitiful, being easily defeated in various contests by children much smaller than he is. Undaunted, Po personally takes him under his wing, only for Lu to fail at every task he is set.
When the emissary returns to check on Lu's status, Po defies the feelings of Shifu and the Five by claiming that he is doing well, and swears by the Emperor's throne that he will help Lu master the skills. Unfortunately, he then learns that if he fails to fulfill this promise, his oath means that he and the other masters will be executed. Shifu then personally decides to oversee Lu's training, but his performance continues to be poor. Po, realizing that the main thing Lu is lacking is self-confidence, hits upon a plan to help him.
Taking Lu to an artifact room in the Jade Palace, Po gifts him with a "mystical" bean pod supposedly once owned by Master Ox. Believing that the vegetable is empowering him, Lu begins to master the Skills of Manhood, to the surprise of both the other masters and the emissary. However, while the masters are relieved that their lives will be spared, the emissary is less than pleased, and travels to Chorh-Gom Prison. There he meets with Hundun and offers him a deal: his freedom in exchange for eliminating Lu and Po.
Po takes Lu to the Birth Place of Kung Fu, where he plans to reveal the true source of Lu's improved performance, only for the pair to be attacked by Hundun and the emissary. Crushing the bean pod, the emissary reveals that he hopes to take Lu's place as the Emperor's heir due to Lu's incompetence. However, Po is able to convince Lu that the skills he thought came from the pod are his own, and he is able to employ his klutziness to defeat the two villains. Lu then ascends to his place in the royal family in a ceremony at the Jade Palace, though it's clear that his accident prone nature remains intact.