Five children discover from Shen the Dragon that they are spirit warriors, on a quest to find twelve spirit pieces - if they fail, the evil Li will find them and then control the universe!

Entering the world of water, the warriors discover the next spirit piece can be bought for a button and a lock of hair. The warriors worry it's too good to be true. They are right and soon they're heading to the Temple of the Four Winds to wash away a curse and to face their worst nightmares.