While there, Jake also hopes to find Rose, knowing she and her family moved there, after her wish for the destruction of The Huntsclan altered reality, so she had never been taken from her family as a baby, thus forgetting Jake as a consequence. Jake's friends then tell him to forget about Rose and move on and find someone else, but Jake then quickly changes the subject and decides to take a look at the view, but Gramps tells Jake why they really went to Hong Kong: During the eclipse tomorrow, Grandpa, Jake, and Haley all must attend the One Thousand Year Toast at Victoria Peak, where the first Dragon Temple was built, which only appears once every thousand years. Fortunately, it only lasts a couple of hours, so for the rest of the time, they are free to enjoy their vacation.
Meanwhile, the Dark Dragon plots to destroy Jake and The Dragon Council as a final step before taking over both the magical and mortal worlds. He sends Chang to kidnap Grandpa, which leads Jake, Trixie, and Spud into a trap where the Dark Dragon and Jake fight, with the Dark Dragon dominating. When Grandpa appears, Jake tries to rescue him, but he is pinned down. With that, the Dark Dragon gives Jake an ultimatum: He is to spike the Dragon Toast with a mind-controlling potion, or else he'll never see his grandfather again. Jake, realizing the great power that the Dark Dragon has gained, decides he needed help in dealing with him. Sending Trixie and Spud, with Jonathan as a tag-along, to search for the local Huntsclan installation – its existence, despite the wish, is unknown – Jake sets out to find Rose in hopes that, even if she no longer rememberes being a Huntsclan member, she still has a natural ability to fight dragons.
He confronts Rose outside of her school, trying to get her to remember and help him at Victoria Peak. Unfortunately, Rose is initially convinced he is an insane stalker and under the pretense of allowing him into her home in order to prove he was a dragon, has actually called her parents, who in turn have called the police to have Jake arrested. However, something about Jake resonates with Rose and she feels bad about him being taken away. She then finds a photo of them in the jacket that he has left behind.
Jake shifts into his dragon form to escape from the back of the paddy wagon and flies to Victoria Peak. Meanwhile, back at the hotel, Fu Dog informs Jake's mother about the trouble Jake is in, and when Haley transforms into her dragon form, ready to help, her father Jonathan accidentally walks into the room and faints at the sight. After regaining consciousness, finally learning the truth about his family and the trouble Jake and Grandpa are in, Jonathan decides to join them and take all of them to Victoria Peak to help defeat the Dark Dragon.
At the One Thousand Year Toast, Jake offers to serve the drink from the Golden Cup, spiking it as ordered, knowing that the Dark Dragon is watching from afar. The Dark Dragon flies in and commands Sun Park to kill one of the Dragon Council members there. However, she struggles to carry out the order, before she and the rest of the dragons all change into different animals, and Jake reveals that he had switched the potion with Transformation Tea in order to lure the Dark Dragon out, bringing Grandpa along to be killed with everyone else.
Jake's friends and family showed up and together with the Good Dragons, return to their original forms when the Transformation Tea wears off, then engage in a final battle with the Dark Dragon and his shadowy minions. Despite having just learned of the magical world, Jonathan and Susan use his flash camera and a bejeweled chalice to banish many of the Shadow Demons.
Rose also appears in time to help Jake at the battle's climax, the photograph having helped restore her memory. As the eclipse event which anchored the temple in reality draws to an end, and the temple is about to disappear for another thousand years, all the dragons and mortals flee outside. Unfortunately, Rose stays behind to fight off the Dark Dragon, and they are both trapped by falling debris. Jake flies in to rescue her, determined not to lose her again. The Dark Dragon, however, grabs Jake's leg with his tail, determined to trap them all; however, Rose uses her Huntsclan staff to cut them free.
Just as the vortex closes, Jake and Rose barely escape to applause from all the dragons and Jake's family and friends. Rose passionately kissea Jake, showing him the photo and how her memory had been restored by it.
As they all return to their hotel room, Jake mentions that, although his father had only just found out he had married into a family of dragons, that he is taking the news pretty well. Jonathan responds that he has always known there was something "magical" about his family. Jake replies, "Trust me, there's something magical about you too", and hugs his father.
- Jonathan Long finally learns the secret about his family.
- Though a third season was written and the series was intended to be continued, Disney decided to cancel it after the second season.