While cleaning the Jade Palace for Tyro and his friends, Tai and Matt's rivalry puts Spyro in danger when they accidentily brake the case of the infamous Spirit Orbs of Master Ding. And to make matters even worse, Spyro is now possessed by the ghost of evil Master Ding who is still intent to unleash his evil powers and take over the land. Now Tai and Matt must right a wrong and save Spyro with some help from Po, Tigress, Agumon and Gabumon before Ding can use Spyro as his pawn, finally unleash his powers and enslave the Valley of Peace. Then to top it off, A group of Armidillo Bandits called The Hui Xui Dillo Boys have been recruited by Ding's Ghost to help ensure he succeeds this time, but Tyro and Shifu have already send the rest of the five and a selected group of lougers to deal with the bandits and ensure they dont interfear with Tai, Matt, Agumon, Gabumon, Po and Tigress saving Spyro from Ding.