Shifu's old enemy, Pai Mei has survived his demise back in Five is Enough and has heard of a small band of villains under the leadership of an over-cocky fool dragon named Spe-Ron. However his plan to join the UUH4 hoping to vanquish Shifu forever are dashed when Dr. Glowrod and his assuiates have got to them first and the UUH4 are now called The New Villain's act. Angered by this, Pai Mei plans to overpower Glowrod, ruin his credibility as a villain, unfreeze Spe-ron from his carbinight entombment and take back the UUH4 for Pai Mei is the most clever of all the Kung Fu Panda Villains and the most abusive Kung Fu Master in China. He begins his move on a Kung Fu Tournament Spyro is partisapating in. However, Glowrod and his assusiates sought to show that little monkey he should've not had have tampered with Alternate villains. In doing so, it may mean.... teaming up with Po and warn Spyro, Kairi and a selected group of lougers of Pai Mei.

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