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When a kung fu prodigy arrives at the Jade Palace, Po's enthusiasm begins to sour when he gets a little jealous of the attention being heaped onto the young master.
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The Valley of Peace is celebrating the Peace Jubilee and Po and Temutai are the hosts of the celebration and are to judge the kids and their kung fu. Then Temutai called his nephew to come up on stage to show his kung fu. Then Peng was chosen by the crowd to come and fight him. Peng was able to defeat him with amazing kung fu moves, which made everyone shocked even Master Shifu. Po was so amazed he encouraged Peng to train at the Jade Palace. After Po's jealousy causes the valley trouble, he and Peng make up and Po finds out why Peng is traveling. Peng is searching for his uncle Tai Lung.
- The episode title references the 1984 American martial arts film The Karate Kid.