Magically transported to southwest China to find the final object needed to break the spell on the wizard Merlin's beloved penguin, Jack and Annie take a side trip to the world's largest giant panda reserve.

Having used their magic tree house to travel to India, where they must get a gift to help free the dog Teddy from a spell, Jack and Annie have adventures involving a tiger and other endangered jungle animals.

Jack and Annie are joined by Teddy and Kathleen as they travel to the snowy Land-Behind-the-Clouds, where they search for the eye of the Ice Wizard and attempt to help Merlin and Morgan.