Day of the Dragon is the thirteenth episode of Jackie Chan Adventures that aired on March 17, 2001.
Shendu has received all twelve talismans and has transformed into a humanoid dragon twice the height of anyone else. With only moderate bragging, Shendu uses his combustion magic to blast Jackie out the wall of the office, and when Jade looks to her uncle , the floor crumbles beneath her too. Plummeting down from the skyscraper, Jackie saves them both by using a window-washer cart's cable to slow his fall, and then he catches Jade with the window-washers help. Back in the office, Valmont requests the treasure promised as payment, but Shendu replies that it was not Valmont that brought him the talismans, but Chan. Enraged at this refusal, Valmont orders Tohru to make Shendu pay him, overriding his employee's visible reluctance. As Tohru leaps in for a half-hearted attack, Shendu calmly uses levitation to immobilize Tohru and super strength to flick him out of the building. Valmont and the others leave the room with bad grace, meeting arrest at the hands of Capt. Black the moment the elevator doors open. Capt. Black arrives in the shattered office just in time to see Shendu fly away, which completely bewilders him, forcing to him to realize that magic and demons really do exist.
Back at Uncle's shop, the combined descriptions from Jackie, Jade, and Capt. Black are not enough to tell Uncle what demon has the talismans. To their surprise, Tohru arrives, having survived with moderate injuries. He tells them the demon is named Shendu, and he offers to turn himself in to Section 13. With this information, Uncle locates the story of Shendu's rule. When the demon was overthrown by his subjects, he vowed to take revenge upon their descendants by destroying all of Asia. Escorted by a squad of Section 13 agents, Uncle and Jackie travel to China, the location of Shendu's palace. (Jackie expressly forbade Jade from coming along, knowing the threat to her parents would make Jade want to join the fight. She gets out of Section 13 anyway, along with the Dark Hand, who escaped via some technology Valmont smuggled in.)
The troops from Section 13 arrive at the castle moments before Shendu does, and they see him open a magical gateway to unleash a swarm of dragon minions once Chinese New Year strikes in a matter of minutes. Uncle hands Jackie a bottle of potion, putting some of it on Jackie's hands. With this spell, his hands can penetrate Shendu's skin and take out the talismans. If Jackie can remove the Rat Talisman , Shendu will revert to his statue form and his magic will be broken.
Jackie gets to Shendu and is soon noticed, using all his reflexes to dodge Shendu's attacks and keep snatching talismans. He does not get the Rat, and the few counterattacks he can make are easily withstood by Shendu's remaining power. His biggest shock yet comes when he realizes Jade has arrived to the middle of the battlefield, but he is cut short when Shendu overwhelms him, shakes him down, and prepares to throw him to the hungry dragons. Just then, Jade leaps onto his back, having picked up and used the rest of Uncle's potion. She snatches the Dog talisman, and Jackie uses the moment to wriggle free and fish out the Rat talisman. With a roar of rage, Shendu collapses back into statue form, and the summoning portal closes up. Shendu sneers venomously at the Chans, but without hesitation, Jade holds up the dropped Dragon talisman and blasts Shendu to smithereens with it since without the Dog Talisman Shendu is not immortal. The castle immediately crumbles to powder shortly after that, and the Chans scramble for safety.
No one sees the four figures rise from the ruins; the Dark Hand had snuck into the castle during the fight to raid it of treasure, but all the riches had also crumbled away. As they look around, they glimpse the talismans poking up out of the earth. Back with the Section 13 escort (who finally get that "magic must defeat magic", except for Black, who was unconscious), Uncle is furious, claiming that destroying Shendu has thrown off the balance of light and darkness, leaving a void for a new and stronger evil to fill. Still, the sight of the New Year's fireworks in the distance is a calming sight to Jackie and to Jade, knowing that the threat has been defeated.
Some time later, Jackie, Uncle and Tohru, who has just moved in, are beginning to miss Jade. Just then, Jade pops up at the door, having been permitted by her parents to stay with them for another year.