Fu is a fun-loving young rabbit who enjoys nothing more than cooking pancakes and practicing kung fu. But he's got a long way to go before he can match the skills of his teacher Shifu, an elderly monkey whose small stature and white hair belie his mastery of martial arts. One night Shifu is ambushed by his arch enemy Slash, an evil panda who longs to steal a magic tablet which holds the key to unimaginable powers. Slash's thugs succeed in poisoning the old master, and he is forced to complete the rest of Fu's training through telepathy. Gravely ill, Shifu begs his student to venture from the comfort of his kitchen to deliver the magic tablet to his daughter, Penny. Determined to honor his fallen master, Fu travels to Capital City, only to find it has been captured by Slash himself. Teaming up with the irrepressible Penny and her sidekick Biggie, Fu finds himself on a heroic quest to defeat the evil panda and save his master's kung fu academy from destruction.