Xena journeys homeward determined to make amends for the sins of her past, but her efforts to begin a new life are challenged by the vengeful warlord Draco. Though she has lost her hunger for power and destruction, Xena cannot stand by when a group of warriors under the command of Hector, a vicious lieutenant of the cruel warlord Draco, threatens to slaughter the peasants of a small village. Xena single-handedly drives off the brutal attackers. Though the villagers are grateful, they are also fearful of her reputation and ask her to leave right away. All, that is, except a spirited young woman named Gabrielle who, bored with life in the village and the prospect of a loveless marriage, pleads with the warrior princess to take her along on her journey.

Xena comes upon a peaceful town that is under attack by the evil Cycnus and his son Sphaerus. In a peaceful valley where settlers have joined together to build a new barn, thugs under the command of the evil Cycnus suddenly swoop down in chariots and destroy the structure. Xena rides up just in time to pull a young boy to safety before he is crushed by the collapsing timbers. For saving the boy's life, Sphaerus, Cycnus' son and the leader of the thugs, strikes her down with an arrow and rides off. Darius, the young boy's father, nurses Xena's wound and insists that she stay with him and his children until it is healed. That night, however, Sphaerus and his men ride out of the darkness to attack again.

Xena must enter the magical realm of the Dreamscape to rescue Gabrielle after she is kidnapped and betrothed to the Dreamgod Morpheus. Seeking a way across the Mystic Mountains, Xena and Gabriella are set upon by a group of highwaymen. A furious battle follows and ends when Xena slays their leader. Unbeknownst to Xena, the whole encounter is observed by a Mystic High Priest named Manus. When they enter a nearby town, they are confronted by warriors. Outnumbered, Xena is busy parrying the attack when Gabrielle is taken away. As Xena searches for her, Gabrielle is told by her captor Manus that she has been chosen to undergo a series of challenges to determine whether she is a bride worthy of the god Morpheus.

When an oracle predicts that a newborn child will one day occupy the throne of King Gregor, Ophelia, a young girl protects a helpless infant doomed by the prophecy that identifies him as a future threat to the King. She spirits the child away before the King’s advisor, Nemos, can find him. She places the child in a basket and sets him floating down a river. The child is later found by Xena and Gabrielle. On their way to find the baby’s parents, Xena saves a woman from a lynching and learns she is Pandora, granddaughter of the legendary woman and the present keeper of Pandora’s Box. Searching for the missing child, Nemos’ men confront Xena at a country inn, where they find her with Gabrielle and the baby. While she fights off the attackers, Nemos quickly snatches up Pandora’s Box and steals away. When a panicky Pandora explains that the Box will open automatically and release the Hope of Mankind if it is out of her hands for another day, Xena arranges for a meeting with Gregor and Nemos.

Xena’s plan to prevent a war by rescuing a kidnapped princess brings her back into contact with murderers and mercenaries from her dark past. One dark evening, Jana, the beautiful young princess of Boeotia, sits under the stars with her handsome young fiancé, Agranon, the prince of Colonus. As they celebrate the fact that their impending marriage will end a bitter, centuries-old feud between their two nations, several masked men overpower Agranon and ride off with Jana. Xena learns of the kidnapping when Agranon approaches her in a seedy tavern where she and Gabrielle have stopped for a meal. Impressed by the ease with which Xena fights her way past several lascivious drunks, Agranon pleads with her to find Jana. He names Mezentius, an arms dealer who will get rich selling weapons to both sides if war breaks out, as the probable kidnapper. Responding to the prince’s obvious anguish, Xena agrees to help, though it means returning to the treacherous city of Trachis where she will be recognized by former colleagues from her dark past.

Ares sets a trap for Xena aimed at returning her to her former life as a ruthless warrior. When Xena comes upon a hooded swordsman about to kill Teracles, the last survivor of an ambushed party of four villagers, she draws her sword and charges the brutal attacker. After proving himself a match for Xena with his quick reflexes and powerful blows, the swordsman suddenly disappears, leaving Xena to tend to the badly wounded man as the other villagers arrive. Distraught over the slaughter, they assume Xena is responsible for the killings. Unable to convince them of the truth, Xena manages a quick escape on horseback with Gabrielle. Rallying most of the villagers behind them, they set a trap for Xena, and when Gabrielle is caught, Xena surrenders. Xena is thrown into a prison cell where she is visited by the hooded Ares, who reveals himself and promises to rescue her and make her queen of the world. Xena resists him and prepares to meet her fate.