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One morning, Tigress attempts to sneak out of her room for some peace and quiet while she practices her kung fu. She makes her way past Po's room, and is initially startled when she hears Po talking, but discovers he is still fast asleep and talking in his sleep. Tigress goes outside to the Training Hall and starts her morning warm ups, but steps on a ninja star during the process. She opens her eyes in pain and sees the equipment lying everywhere around her, not put away. Tigress blames Po and then goes to have her breakfast, which consists of three small cubes of tofu. She starts to eat when Po bursts in, saying good morning to her. Po then proceeds to insult her breakfast, then pushes it out of the way while placing a plate of bean buns in place of the tofu, saying that bean buns are perfect for breakfast. The two of them are soon joined by the other members of the Furious Five, who join in Po's antics, as Tigress begins to lose her patience. Zeng then flies into the Jade Palace, shouting for the group, and Po questions if they should go see what it is. Tigress jumps up out of her seat and sarcastically tells Po and the other members of the Furious Five that they should just sit around continuing to just talk about it. Po takes it seriously, while Tigress leaves.
Outside, Po and Tigress attempt to coax what is going on out of Zeng, but both are unsuccessful. Shifu then shows up, and with Tigress' help is able to find out that Mistress Mugan is on her way up to the Jade Palace. Po asks the Five who Mugan is, and is informed that she is one of the most revered and respected kung fu masters in all of China, and that she hardly ever leaves the Garnet Palace. Therefore she is very mysterious. While Po struggles under the weight of a bunch of weapons, the Furious Five line up beside Shifu and prepare to welcome Mugan. She enters being born on a palequin by a group of goat servants. One of the goats then pulls a curtain up, to reveal that Mugan is actually a goldfish. When Po sees her, he shows her extreme disrespect, asking the others if this is seriously a fish. Mugan responds by telling Shifu she must speak with him in private. While Mugan and Shifu talk inside the Jade Palace, Po and the members of the Furious Five wait outside, with Po trying to get Wu Yong to let the group inside to see what is going on. Just then, the doors of the Jade Palace open, and Shifu informs the group that Mugan wants to speak with them inside. They enter, and Mugan informs them that she has recently lost her latest kung fu master, and that Shifu has been gracious enough to offer one of the Furious Five to replace that master. Po interrupts, inquiring about why he wasn't included, to which Mugan scathingly replies that she wants a warrior who worked their way up to the top of the ladder by hard work, not by a ridiculous twist of fate. She informs the Five they have until nightfall to let her know their decision.
At dinner, Po jokes around and makes fun of Mugan, asking if anyone would seriously take Mugan up on her offer to train at the Garnet Palace. Viper, Monkey, Mantis, and Crane all agree with Po that they would not take her up on her offer. Tigress then reveals that she has talked to Mugan and will be joining her at the Garnet Palace. As she leaves, Po goes after her and asks her why she would do this. Tigress responds it is because of Po, that before he came to the Jade Palace, all the Furious Five did was train in the ways of kung fu. Since Po came, the lack of discipline and commitment has gone downhill. She tells Po that because of this, she no longer belongs at the Jade Palace. Later that night, Tigress prepares to leave and says her farewells to the Five, Po, and Shifu. Mugan asks her if this is truly what she wants to do, for once she leaves she can never return home. Tigress looks back at her friends and the Jade Palace and then turns back to Mugan and says she is sure. She then leaves, following Mugan.
The next day, Tigress and Mugan arrive at the Garnet Palace. Mugan advises Tigress to get some rest so she can prepare for the next day's training, but Tigress tells Mugan that she does not need any rest. At this, Mugan states that Tigress should show her what she can do, and Tigress then performs a spectacular display of kung fu skill. Mugan states that she is powerful, but lacks precision. Mugan then demonstrates her own kung fu skills to Tigress, using her fins as razor sharp cutting tools, and cuts Tigress across the back. Tigress states her awe of Mugan's skill, then is led by Wu Yong to her room. Tigress then discovers that Po replaced her belongings with action figures of himself, Shifu, and the Furious Five, so she would not forget them. Tigress tosses her bag under the bed and goes to sleep.
Tigress then trains for several days, with Mugan not noticing her skills or offering her any praise. Finally, Tigress begins to get lonely, and takes out the action figure of Po and goes to bed sad. Po on his end is missing Tigress as well, and takes out the action figure of her and pretends to be her, even going so far as to critique his own room in a similar voice to Tigress'. Back at the Garnet Palace, Wu Yong comes in to wake up Tigress, and when Tigress asks him to tell her about Mugan's last student. Wu Yong then tells her the tale of the last student who came to study under Mugan, who studied hard 'till his spirit and body broke. He limps away, and Tigress then realizes that Wu Yong was the student.. As Wu Yong limps away, Mugan bursts in, and Tigress tells her she has made a mistake and wishes to return to the Jade Palace. Mugan states she understands, then locks Tigress in her room, stating that Tigress is hers and that Mugan will break her. Tigress tries to escape, but fails.
Afterwards, Po heads to the Garnet Palace, and eventually breaks into the palace. He finds Tigress, and the two attempt to escape, but were stopped by Mugan. After a battle, Po eventually sets a trap that forces Mugan into a central tank, and trapped her there, freeing Tigress and Wu Yong.
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