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When Spyro's popularity in the Kung Fu World begins to grow, Po desides to become the Midnight Stranger again to test Spyro in facing compition with a masked hero fighting crime. However, this once again attracts bad attention of someone who was once the Midnight Stranger's enemy: The Laughing Villain. A Hyena that is like a Chinese verson of Joker, who has been looking for the midnight stranger forever to seek a hidious vengence, and thanks to Po desiding to play pretend hero, mistakes Po for the real midnight stranger, and soughts to destroy him! Now Spyro has to get Po out of this scrape and defeat the Laughing Villain by teaming with with the REAL Midnight Stranger unaweare that both Kairi and Mr. Ping are following him along with Constable Hu who's been after the Laughing Villain for months.

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