Uncle has fashioned a locater for the activated relics. As Jade watched a game show called, ""The International Island Challenge,"" the locater senses the next relic, which is the prize on the game show: the gourd containing the Water Demon's chi. Jade pleads Jackie to let them enter the contest held on Boru Island, but Jackie explains that this is a serious mission. However, on the set, the producer mistakes Jackie, Uncle, Jade, and Tohru as a competing family. They must face off against the Dusseldorf family, but they fail in the first task when Tohru falls off the bridge after being pelted by coconuts. However, it is Uncle who is voted out of the family, but he manages to stay on the island for the night after complaining about his supposed fear of flying.

In the second round, neither family wins the bug-eating contest, so they must race in the tie-breaking round. When Jackie, Tohru, and Jade near the finish line, Drago appears, manages to obtain the Water Demon chi, and creates a tid

Jackie and the gang visit the ancestral home of the Chans in China (now mostly underwater). There, they accidentally release three demon spirits that transform their bodies into the physical embodiment of their fears.

The chi of the mountain demon, Po Kong is released after Tohru has a midnight snack whilst on a diet.