In the mystical land of Chima, Laval the Lion and Cragger are the best of friends. An innocent mischief results in Cragger gettinghis first experience with the CHI … a powerful sacred resource important to the delicate balance of Chima. The CHI and gives awesomepower to the user but needs to be spent carefully and certainly not by young adventurous animals. The incident leads todisagreements between the Lions and the crocs, and ultimately to fighting. The two friends try to convince everyone that this isjust a big misunderstanding, but and escalating series of unfortunate events push Laval and Cragger apart. In the end Cragger'sparents, the king and queen of the crocodile tribe, fall into the Gorge of Eternal Depth and are lost. The young Cragger is now kingof the Crocodile tribe. Laval consoles him, but it seems that Crooler, Craggers sinister twin sister, has other plans.

Cragger is depressed by his great responsibility as king. Crooler on the other hand sees the situation as an opportunity to make theCrocodiles the most powerful tribe in Chima. Using a mystical glowing flower she clouds Craggers judgement and makes him turnagainst the lions ... the aim is to control all of the precious CHI. It is CHI day … a celebration of CHI at the Lion City, withracing events where the tribes compete for the powerful Golden CHI. Laval wins the games, but in the process angers the Wolves. Athend of the festival Cragger attempts to disrupt the games, and later allies with the disgruntled Wolves and the sneaky Ravens. Theylaunch a massive assault on the Lions city to get their CHI. The Lions call upon the Gorillas and the Eagles to aid them in thebattle. During the battle, Laval ends up in jeopardy but gets saved at the last moment by a fabled, long forgotten Legend Beast. Itcarries him back into the battle.

Cragger tricks Laval into withholding Chi from the Crocodile tribe. This reignites the hostilities between the Lions and Crocodiles. Laval must frantically escape the wrath of the Crocs and somehow get rid of the Chi before his father finds out.

Laval and Eris the Eagle take a Lion tank for a ride around Chima. But it may not be such a good idea. Laval has no driving skills and Eris has little sense of direction. But during their trip they discover that Cragger has employed a tribe of beavers in an elaborate plot to steal all of the Chi.

It's market day and the CHI celebration race for the Golden CHI is on but when the Ravens steal the golden orb, it looks like the race might not happen at all.