Young Emperor Zǐ Lóng, The Chinese Purple Dragon's Grandson has recived word of the Purple Dragon who have brought his Grandfather's murderer, Bao Sa Mao to justice and has declaired a festival in Spyro's honor. After Spyro recives Zi Long's invitation, He, Sparx and the Kung Fu Panda Gang accompined by Chao, Ox, Croc, Kairi and Lord Shen go meet Zi Long in his Imperial City and tell him the truth that Bao Sa Mao who has atoned for his sins in the past, is still alive, though now is without magic, light or dark.. A vengeful, unresaonable, betrayed and tyrannical sickness of the mind had begun to take over Zi Long who has Spyro arrested for not getting "True Justice" on Bao Sa Mao, and orders them to be exicuted. Gee, you think he would've followed well into his grand-dad's footsteps? What's worse, his anger made him feel that all of exsitence and the heavens have betrayed him, and suddenly forces him to unleash the chinese darkspawn to destroy China as punishment for the lies of rumors much to his parents worries and there is a prophecy from The Soothsayer's kind, equally wise brother and the court's oracle, The Prophecyteller that if Zi Long's anger continued to lead him down this vengeful path and if that anger continues to thrive, bad things will follow in the form of a certain Dragon-Demon. Ke-Pa who has survived his first battle with Spyro, has heard of his upcoming exicution, Zi Long's vengeful, unresaonable attitude and sees the madness as his chance to settle his score with Spyro, use his purple dragon powers to summon his demon legion, take control of the chinese darkspawn for his own use and finally destroy the world which is just as the Prophecyteller fortold. Looks like Zi Long's anger had just become the entire United Universe's and his own undoing...Or so it would seem. Bao Sa Mao has heard of Zi Long's anger causing Ke-Pa to gain the upperhand and desides to prove his atonement to Spyro and make amends to Zi Long for murdering his Grandfather by saving Spyro and Zi Long. After realizing the error of his ways, Zi Long, now apologentic for his stubborness and pride teams up with Spyro to defeat and stop Ke-Pa from taking over the entire United Universes now that the stakes are higher then ever while learning a life lesson of what the consequences anger, grief and revenge will bring.