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In "Face Full of Fear"
When they were both children, Pen Fang took great delight in terrorizing Po, an experience that deeply scarred the young Panda and which left him paralyzed with fear at the thought of his tormentor. Eventually Pen Fang's family moved out of the village, much to Po's relief. However, years later Pen Fang and his son moved back into the village, which Po was horrified to discover. Despite Pen Fang's small size, Po remained terrified of him, much to the delight of the still mean-spirited rabbit. Even worse, Temutai learned of the effect Pen Fang had upon Po and joined forced with him to further his own plans.
With Pen Fang's aid, Temutai succeeded in stealing a supply of black power for use in an attack on the Jade Palace. Po, having seen his own young friends befriend Pen Fang's formerly bullying son, decided to confront Pen Fang in an effort to overcome his fear at last. Pen Fang continued to torment Po during this showdown, but the sight of Temutai's rocket-intended to destroy the Jade Palace and everyone inside-allowed Po to overcome his fear. After learning that Kong was in the palace with the other children, Pen Fang joined forces with Po to stop Temutai, and they managed to prevent the rocket from hitting the palace after being launched. Pen Fang then apologized to Po for his previous bullying, confessing that it was done out of jealousy, and allowed Po to use one of his own bullying tortures against him.