Peter doubts himself because he did not react when an intruder acted out at the precinct. He transfers his anger onto Caine who leaves town. Peter joins a hockey team to apprehend the man who hurt Kelly's brother.
During the Dalai Lama's ceremonial visit to Chinatown, he is targeted by an assassin who can burn a man alive from the inside out. This assassin, a boyhood friend of Peter, takes on the role of Fang, a figure from Chinese legends.
Three suicides at a military academy send Peter, Kwai Chang, and a former student to the aid of Todd Simms, the son of the Police Captain. An old enemy has infiltrated the academy and hypnotizes students into doing his bidding.
The 101 Precinct cops start acting erratic when they are under the spell of an ancient Chinese board game that a group of kids discovered in an haunted house and started playing. It is up to Caine to break the curse.
Kermit's disappearance sends Peter and Kwai Chang Caine on a rescue mission where they discover that mercenaries are holding family members of high ranking officials in order to blackmail them into supporting their political agenda.
The Sing Wah steal the treasure of the Bodi Dharma including the amulet of Kwai Chang from a Shaolin temple. It becomes the prize in a publisher's treasure hunt and the race to recover it may prove deadly.