In the Valley of Peace, Po, a clumsy and overweight panda, dreams of becoming a kung fu master. He lives a humble life with his father, Mr. Ping, in their noodle shop, where his love for kung fu only seems like a distant fantasy. Meanwhile, the valley is protected by the Furious Five—Tigress, Monkey, Mantis, Viper, and Crane—a group of elite kung fu warriors trained by the wise and ancient Master Shifu. The peace is threatened when news arrives that the villainous snow leopard Tai Lung, a former student of Shifu, has escaped from prison and seeks revenge and the powerful Dragon Scroll.

Master Oogway, the old tortoise and kung fu sage, decides the time has come to choose the legendary Dragon Warrior, said to be worthy of receiving the Dragon Scroll's secret to boundless power. During the selection event attended by the entire valley, Po unexpectedly finds himself rocketed into the midst of the ceremony. Much to everyone's shock, including Po's, Oogway proclaims Po as the chosen Dragon Warrior. Skeptical of Oogway's decision, Shifu reluctantly agrees to train Po, who must now overcome the disdain of the Furious Five and his own self-doubts to realize his dream of becoming a true kung fu hero.