The entrance test for Shrek Academy starts with a fight with a seven-ring spirit sage, ZhaoWuJi. This scares all of the prospecting students away, except for TangSan, XiaoWu and ZhuZhuQing (this character gets introduced in this episode). The three that fought pass the entrance exam and join Shrek Academy. The academy is located in a village outside of SuoTuo City, and is now made up of 5 students and the Headmaster (LanDe). The students take a day to get settled in the academy and ZhuZhuQing challenges DaiMuBai to a fight, but loses. OuSiKe's dream is to be an actor in a traveling theatre group, but the Headmaster wants him to be a spirit master. HuLieNa enters the academy as an observer. TangSan and XiaoWu go to SuoTuo City to meet with Grandmaster, who is anxious about HuLieNa's connection to Spirit Hall.