Since returning to the Valley of Peace and becoming the New Master of the Jade Palace with his friends: Aqua, Terra, a now reformed Mang Cobra and Ventus in The New Chronicles Part 2. They have been defending the Valley very well and Tyro has been mastering inner peace. But then he stumbles upon a document containing a recorded history of his kind in a historical timeline known as the Indigo Dragon Dynasty. Discovering that he has come from a great line of Indigo Dragon Guardians and Kung Fu Fighters that protected the United Universe with Justice, Benevolence and Honor. He summons Spyro, Kairi, The Kung Fu Panda Group and a selected group of lougers to the Palace to share his discovery and ask them to unlock the secrets of his ancestors. However, they unleashed the bad kind of secret: A disgraced and evil Indigo dragon named Ocean Inferno, who now intents to place Indigos as the rightful congurers and enslavers of all lesser creatures! Now Spyro and company must help Tyro and his friends put things right by defeating Ocean Inferno, foil his plan to enslave China and bring him to justice using a secret Tyro's ancestors used to defeat him in the past.