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Valmont is freed from Shendu's possession when the Chans banish him and his siblings back to the netherworld. Due to the major expenses from the previous seasons' artifact hunts, Valmont is rendered bankrupt and the Dark Hand is no more. With nothing to lose, Valmont orders his three enforcers to break into Section 13 and steal the Twelve Talismans of Shendu.

They encounter the Dark Wizard Daolon Wong who has just arrived to San Francisco for the same purpose. To stop anybody from getting the Talismans again, Jackie destroys them with a powerful laser cannon. However, this merely releases the powers held within which then relocate to the Twelve Noble Animals - restarting the Talisman hunt from season 1, only now they must compete with Daolon Wong who has now transformed the enforcers into his Dark Chi Warriors after Uncle imprisoned his original set. The Chans must find and secure each animal gifted with their ancestor's power before Wong can attain the powers for himself.