Tai Lung escapes from jail and defeats the Furious Five with ease.
After finally getting through to Po (with the use of food), Master Shiffu decides it is time for the Panda to read from the Dragon Scroll - but the scroll has no writing and just shows a reflection. Po realises what it all means later, when he finds out the secret recipe for his father noodle soup is nothing but imagination.
Now that Po is ready, Shiffu has finally found his inner peace again - just as Oogway said.
Tai Lung makes it to the Jade Palace, knocks out his old master - but before he can read the scroll Po challenges his enemy to an epic battle. Finally Tai Lung gets the upper hand and his hands on the scroll, and is full of rage when he finds that it is empty.
It seems Po is immune from his enemy's nerve attack due to his flabby belly. After some more damage to his tired opponent, Po uses the Wuxi Finger Hold (that he figured out), and Tai Lung is dispatched in a huge energy explosion.
The Furious Five then honor Po as the worthy Dragon Warrior.