A blizzard, on Christmas Eve, provides opportunities to a variety of criminals: a mugger disguised as Santa Claus, a repeat rapist, and an attempted prison break. The officers of the 101st Precinct must deal with them all.
Gangsters from Chinatown seek a key and bracelet that are in the possession of a female kung fu teacher, whose mortally ill grandfather was an old adversary of the Ancient.
Caine is poisoned by some assailants with a toxin that affects his chi, his life force. According to the Ancient, Caine will die, unless his spirit and his chi can be reunited.
Sing Wah members steal a Shaolin treasure and sell it to a publishing house, which uses it for a promotional treasure hunt. Then Sing Wah decides it wants the treasure back.
After a date with Skalany, Caine is hit by a car, then disappears. Months later, he surfaces as a casino pianist who recognizes no one from the precinct.
Some children, exploring an abandoned house, come across a treasure trove of Chinese artifacts, including a board game which emits a strange force that hits Caine, even though he is miles away.
Caine and Peter discover that a mercenary named Macklin, with whom they have had negative encounters previously, has turned up at a military academy, where some cadets are killing themselves.
When the Dalai Lama visits Chinatown, he is targeted by a strange contract killer with flames in his eyes. Peter and Caine find out that the assassin is an old friend.
In this episode, Peter and Caine travel to ancient China to help the first Shaolin monks fight the warlords. The monks don't have the Shaolin dragon tattoos and Peter and Caine must explain the essence of being Shaolin.