After an exchange student named Mai Lee shows up in town to stay with Velma, strange Kung Fu wizards begin attacking the town trying to get her. As it turns out, Mai Lee has a ring they are after. The gang decides to help -- but friction arises when Shaggy develops a crush on Mai Lee that really gets under Velma's skin; and Fred inadvertently trashes Daphne's home when the wizards attack there. Fortunately, they find an ally in Crystal Cove's Tea Shop owner, Chen, who reveals to them that the wizards are after the "Dragon's Heart," a mythical jewel that he just happens to be guarding. Now, it's up to the gang to solve the mystery before they lose the Dragon's Heart, and Mai Lee... forever!