The show opens with Xena still trapped in Callisto's body. Gabrielle is having some trouble accepting this change. They are discussing this when "Xena" hears something. Gabrielle takes down Joxer. He has a message for Callisto, supposedly from Ares. But of course Ares knows Callisto is dead, so "Xena" is immediately suspicious.
Ten powerful warlords have been called together by Ares, according to the invitation. Xena and Gabrielle go to the village where they are to meet. There they find Ares, only he is now mortal. He has lost his Godly powers because while he was busy playing around with Xena and Callisto, someone stole his Godhood, which is manifested by his sword- without it he is exiled to being human. This is also why Xena did not get her "real" body back and why she is trapped in Callisto's body.
Meanwhile, people everywhere, including Gabrielle, are having problems keeping their anger under control. Minor fights break out everywhere. Gabrielle curses, wants to take down everyone, and is just generally extremely belligerent. "Xena" gives Ares a throw across the room to see if he's being truthful about being human; upon finding he is, she tells him she will not help him get his sword back. But Gabrielle continues to be angry, even though "Xena" tries to calm her. Ares says that without a God of War, people cannot maintain their self-discipline and curb their tempers. "Xena" decides to help Ares after watching Gabrielle continually become angry. She tells Gabrielle to stay where she is, and she goes with Ares.
Thepairtake outone of the ten warlords so that Ares can get an invitation; they board a boat and sail away. Everyone thinks "Xena" is Callisto, so she more or less plays the part. They all arrive at an island, where a grand spectacle of fire, etc. is put on, and someone pretends to be Ares. It turns out King Sisyphus has escaped his eternal hell of pushing a rock up a hill and during his escape he took Ares' sword. He tells the warlords that there is a monster outside his castle; whoever kills it will be God of War. In return for making a new God of War, Sisyphus will have immortality.
The warlords draw numbers to go against the monster; "Xena" draws number 1. Some of the other warlords go after her; there is a fight. Ares is wounded, and "Xena" tends to him. He also tells her he made love to her body while Callisto was in it. "Xena" says she must remember to take a bath when she ever gets her real body back.
Meanwhile, Gabrielle and Joxer follow "Xena"; they go into the castle via a drain pipe and nearly kill one another, arguing. They keep hearing the monster roar, and this makes Gabrielle angrier all the time.
Up on top, the warlords kill one another off. Sisyphus tries to kill Ares but "Xena" saves him. The warlords go after "Xena" and Ares, as well, at varying times, and the number of warlords keeps dwindling.
Finally there are 5 left; then 4, and then "Xena" realizes where the sword is being hidden. She fights, Ares fights, and she finally gets the sword. Sisyphus tells her to go on, be the Goddess of War. About this time Gabrielle and Joxer show up, Joxer having stuck a stick into the fans which were creating the noises from Sisyphus' supposed "monster". The warlord that Ares thought he'd killed isn't quite dead, and he attacks the still-mortal Ares; Xena throws (Ares) sword into the attacking warlord and saves Ares. Ares picks up his sword and becomes a God again. Gabrielle says wait, you promised you'd put her back in her body... but Ares disappears, as does Sisyphus.
As "Xena" and Gabrielle are walking down the beach to the boat (with Joxer far ahead and out of the way), Gabrielle tells "Xena" she will always be there for her, no matter what... but kind of like Medusa, she just won't always be able to look at her. And then the camera focuses on Gabrielle, looking a little sad, and then you hear a change in voice as "Xena" talks, and Gabrielle turns around to find .. XENA, for real, in the flesh. A little test to make sure it's not Callisto returned, and Gabrielle says, it really is you... and they hug.