Ai gets Dahu to direct the town's annual Chinese New Year parade, but Meiying and her posse accidentally burn the dragon puppet. Meanwhile, Stitch tricks the Jaboodies and the Woolagongs to fight each other over him.
Stitch escapes the Jaboodies and the Woolagongs and ends up in the Huangshan mountains. There he meets and quickly bonds with orphaned human girl Ai, and they look for a shrine while the aliens still go after Experiment 626.