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He wakes up from an awesome dream and goes to work, we works in a noodle shop with his father goose, and he realizes that something special is going to happen
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Master Shifu freaks out since Tai Lung is coming back and orders his people to go tell guards to double defense and also double everything. They set up a festival for the choosing of dragon warrior.
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Po force breaks into the temple by shooting fireworks into a cart, this causes him to go right in front of master Oogway making him the dragon warrior worthy of the dragon scroll.
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Everybody is shocked that Po is picked as dragon warrior making him have a bad reputation among his own training buddies. This causes him to be sad and he doesn’t feel like he belongs in there at all.
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Tai lung uses the feather of the servant that Master shifu sent to escape. Tai lung is free and he is coming for the dragon scroll since he is so self deprived that he should be the dragon warrior
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Master shifu says he will believe in Po and Master Oogway trust him and goes to the spirit realm for the rest of his life. After that Master Shifu tells Po, and Po freaks out and tries to escape.
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They escape in the middle of the night and start heading towards where Tai Lung will appear next to stop him and soon fail in a attempt.
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Po goes to eat cookies in the morning and is startled by Master Shifu looking at him in shock. Master Shifu see’s the potential and goes on this really long training scene that last for 2 days.
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The furious 5 under estimate Tai Lungs abilities and powers and end up in a brutal mess getting hurt. The winged messenger is still alive and takes them back to the palace to warn Master Shifu.
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He makes the order to save people by making them evacuate the valley before Tai Lung came to the Valley of peace.
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Tai lung enraged that the scroll is gone goes out to kill Shifu but Po come right in time before he gets killed and beat up.
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Po learns that there is no secret within the ancient scroll and but he has to believe that he is the dragon warrior in order to achieve this goal. As soon as he learns about this he goes back to the Jade temple to help out Shifu.
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Po and Tai Lung fight for the dragon scroll, they had to go through a lot of intense fighting but Po in the end wins. Po wins by using the ancient strategy of the Wuxi finger hold where if he flexes his pinky Tai Lung goes to the Spirit realm. Po ultimately has to use it because Tai Lung was too evil, and Po ends off his life, and this causes elemental wave to go off for hundred of miles causing flowers to grow and The Valley to go into harmony.
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The citizens of The Valley of peace return and Po is victorious. He soon realizes that Master Shifu is hurt and goes back up but it turns out that Master Shifu was just resting, Master Shifu believed in Po set peace to the world for now. Po lays down with Shifu and then asks if he wants to go out for some noodles, and then the movie slowly rolls into credit making it the end of the movie.