Continuing his "legendary adventures of awesomeness", Po must face two hugely epic, but different threats: one supernatural and the other a little closer to his home. When Po's long-lost panda father suddenly reappears, the reunited duo travels to a secret panda paradise to meet scores of hilarious new panda characters. But when the supernatural villain Kai begins to sweep across China defeating all the kung fu masters, Po must do the impossible-learn to train a village full of his fun-loving, clumsy brethren to become the ultimate band of Kung Fu Pandas.

Po and the Furious Five uncover the legend of three of kung fu's greatest heroes: Master Thundering Rhino, Master Storming Ox, and Master Croc. Po breaks into the Hall of Heroes with Tigress and Mantis to see the new exhibits, especially for the ones featuring Masters Thundering Rhino, Storming Ox and Croc. Once there, Po tells the story of how that trio began as small time street fighters until the villainous Wu Sisters escape with plans to conquer China. Against this threat, Master Oogway convinces the selfish trio to accompany him on a quest to stop the sisters. In the challenges that follow, those masters find that the grandiose promises of riches they heard are fading as they learn that there are things far more worthy to fight for.

Po is to host the annual winter holiday feast and he struggles to meet his friends' expectations. The Winter Festival is coming and Po is asked to host the great exclusive formal banquet for all the Masters of Kung Fu. However, the occasion is on the same night as his father's restaurant's own party and Mr. Ping, upset at his son's absence, will not cancel it to cook for the masters at Po's request. Burdened by his father's imposed guilt about his conflicting responsibilities, Po finds all the preparations a dispiriting struggle. However, the solution comes from where he least expects it even as the panda must decide who truly needs him more on the big night.

Ordered to teach a martial arts class of rambunctious bunny kittens, Po tells stories of each of the Furious Five's pasts. With Po's status as the Dragon Warrior proven to all, Master Shifu has a new challenge for him; teaching Introduction to Kung Fu class to a bunch of a rambunctious bunny children. After getting the class to come to order, Po teaches them that fighting is only part of kung fu, while its true meaning is "Excellence of Self." To explain this philosophy, Po tells stories of each of his comrades, The Furious Five, and how they faced formative challenges in their youth that helped define them as true masters of kung fu.