Their first stop is the local Chinatown, where they meet Maggie Xi, who warns them that the demonic sorcerer Zen Tuo has disrupted the local festival she is organizing before disappearing when a dragon roar is heard. Scooby finds clues and searches alleys, a sewer, a dojo, and a fortune cookie factory to track down Zen Tuo, save Shaggy and Daphne, and battle Zen Tuo's dragon in a kung fu costume made of Mubber. Zen Tuo turns out to be Xi in disguise, as Velma admits she gave it away when disappearing into the sewer entrance when they first met, using the dragon as a distraction. Maggie Xi cackles as her body disintegrates, revealing that she is one of the stolen animatronics, with a male voice coming through a hidden device telling the gang that they "can't catch what they can't hold!". Though Fred knows that the voice might be Jed, he remains in disbelief.