When Willow uses her charms on all the boys in the temple, Kimiko becomes even more suspicious and she eventually discovers Willow's secret double identity as Shadow. Meanwhile, Chase Young captures Ping Pong and takes revenge on Xiaolin, destroying the temple.

Dojo dreams about the mysterious dancing bunnies, which lead to the Golden Bunny - a mystical talisman hidden amongst the giant bunnies in an ancient citadel. The Monks must do what it takes to find and protect the sacred object, while keeping the giant bunnies at bay or they will mutate into beastly creatures and destroy the village.

Kimiko must save the day by going inside Digital Tokyo, a virtual world built by her father to battle a giant cyber worm.