Josh and Ling, teenagers on separate visits with their archaeologist parents to an ancient Chinese dig site, stumble upon a hidden temple guarded by a mysterious dragon. The dragon reveals itself seeking its magical pearl, which has been stolen, and enlists the kids' help in recovering it. Initially skeptical, their curiosity and sense of adventure drive them to investigate further. They discover that the pearl is not just an artifact but a powerful talisman connected deeply to the dragon's fate and the balance of nature.

As they search for clues, Josh and Ling face numerous obstacles, including deciphering ancient riddles and evading those who wish to exploit the pearl for their own gain. Their bond grows stronger as they confront both physical challenges and moral dilemmas, leading them to a deeper understanding of friendship and responsibility. Through their journey, they uncover secrets about the dragon, its pearl, and their personal connections to the legend, setting the stage for a climactic series of events that will determine the fate of the dragon and the treasures it protects.