After having a fight with Shendu, Valmont keeps the Dragon Talisman of combustion for himself and not only busts into the U.S. Mint but puts Captain Black into the hospital as well. Valmont steals all the gold in the reserve, and Jackie must get the talisman, but this time, he has to use his brain to defeat Valmont because of Valmont's incredible powers.

While attempting to stop the Enforcers from getting the fourth oni mask, it accidentally lands on Captain Black's face. He uses the powers of the mask to help him easily take down the Enforcers. Jackie and the rest of the group become worried when Captain Black becomes very intrigued and excited by his newfound abilities.

Captain Black's true good side is able to ward off the influence of the mask for a while, but the dark power of the oni begins to slowly corrupt and take hold of him. When the darker oni Captain Black finally emerges, he attempts to take advantage of his full access to Section 13. Jackie, Jade, Uncle, and Tohru race to work on a way to keep the other three stored masks away from Black as they search for the ingredient needed to perform a removal spell.

The J-Team unites to battle the anti-J-Team, and Jade casts a spell that backfires and turns the J-Team into toddlers.

Drago breaks out of Section 13 on a mission to absorb the demon chi that is held in the original artifacts used to defeat the demons so many years ago. He finds the Enforcers at a petting zoo and transforms them into dragon-human hybrids. Drago locates the fan that holds the chi of the Wind Demon. Meanwhile, Jade gets into the nasty habit of burping. Jackie and Captain Black hunt Drago down to a Chinese-themed car wash, where the fan is located. Unbeknownst to everyone, Jade absorbs the demon chi. At school, her burps create powerful wind storms, and she begins to transform into a frog. Drago attacks Jade at school in order to absorb the chi, but Uncle and Tohru arrive to capture it instead. Drago fires the Enforcers and turns them back into their old human selves after they prove that they are weak and useless.

After capturing the chi of Hsi Wu, the sky demon, Uncle attempts to place it in the chi containment unit. However it is broken, so the chi must remain in the chi-o-matic. Thinking that it is empty, Jade then takes Uncle's chi contraption with her on a school field trip to a haunted doorknob museum. Jade's teacher, Mrs. Hartman confiscates the chi-o-matic and accidentally infuses herself with Hsi Wu's chi. Things get worse in the haunted house when Drago appears and the ghosts get angry at the presence of two demons in their house.

After fully absorbing the chi of Tchang Zu, Drago sets out to magnify the power of the thunder chi by turning his new lair, Seattle’s Space Needle into his own personal electrical rod. Uncle reveals that the longer that Drago has the demon chi, it will become even more difficult for him to remove it.