The episode starts off with Jake, as a dragon, flying over NYC with his friends, Trixie and Spud. He talks over a walkie-talkie to Trixie, who passes it to Spud. Spud presses a button which makes a cowboy dance and then a traffic light turn red. After almost getting caught by the driver, Trixie remarks how she and Spud are alike. Jake tells them to come on, or they won’t get yearbooks. They brake into the van and steal three yearbooks.
The next day, Trixie and Spud are very happy about the yearbooks, and Spud tells Trixie how much he likes them. Jake comes over and tells them that, because of "dragon business", he missed Picture Day, an 9th grade dance and a lot more. Spud reassures him that it’s been slow and if it stays that way, he’ll be able to get some yearbooks signed and attend a Make-Fun-of-Rotwood-Party. Jake gets his hopes up... as Gramps calls to tell him that there’s a magical emergency.
In the next scene, Jake rushes into Gramps’ shop to find out the emergency was only a test. He goes on to explain that he and Fu Dog are attending a three day Dragon Council Meeting. Sun says that he and Haley would be dragon training with her. Jake complains that the last week of Middle School is now. Gramps refuses and yells at Fu Dog, who is trying to whack himself with a limbo stick.
Jake rushes to Phys. Ed classes to find that everyone is with another person. Spud says that they are picking graduations partners. Jake asks if Danika Hunnicutt was open but Trixie says all the girls have been taken. Spud offers him a partner, which is CPR dummy. Jake complains that being the American Dragon makes him miss his normal life. Brad then goes to prank Rotwood, only to get suspended for the rest of Middle School.
At lunch, the friends talk about Brad. Jake then says he has an idea and rushes home. Haley checks the rules, but finds out about Jake’s plan and threatens to call Gramps. Jake convinces her not to, knowing she’s next in line if Jake’s plan works.
The Dragon Councils talks to Jake after the cake explodes. As a result, Jake had his Dragon Chi taken for a week. Jake sees how cool it is to actually be a normal human being for one week. Back in NYC, Councilor Chang and her sidekick, Bananas the monkey reveals their plan to make The Dark Dragon rise again.
Sun is preparing Haley to becoming the American Dragon. Haley claims that, unlike Jake, she won’t let anyone down. Jake is apologizing to Gramps, with Gramps saying he’s unable to understand how this could happen. Jake says it was a bad recipe and that he would act like a regular human. At Rotwood’s party, he teases him, with the kids saying that the imitation rocks. Haley is practicing her duties. After going through one round, Sun says she needs to do it again... 199 times, that is. Jake and co. are singing at Karaoke Night. At the same time, Haley is late for school and lies to her teacher on why she is late. Later, Haley has to find a troll’s wedding ring. She complains that the troll should be looking for it. At school, Jake loves the attention. After running into Danica Honeycutt, she agrees to be her graduation partner, forgetting their previous encounter (See Siren Says).
At night, Dad’s remarking on how calm Jake is compared to Haley, who is severely stressed out. After, she gets a call from Sun to tell her Chang is at Magus’ Bazaar.
Chang is trying to find hydra scales and a phoenix feather. Sun and Haley attack them. Bananas poured Essence of Troll on Haley. Eventually, Chang defeats Sun and Banana finds the ingredients and the two escapes.
At the shop, half of Haley’s face looks like a troll. Fu and Gramps returned from the meeting, and Gramps says everything’s OK, but Haley still panics about her face. After looking at something, the four of them realize that hydra scales and a phoenix feather were needed, along with the American Dragon’s chi to make the Dark Dragon rise again. However, Chang and Bananas don’t know that Haley is the American Dragon.
Jake runs to his house, only to be stopped by Danica Honeycutt. She said that graduation uniforms were handed out early and that she picked up for him. Danica says it’s nice to move on. Jake promises to be there and Danica leaves. Suddenly, Chang arrives. Jake forgets that he’s not a dragon anymore and Chang captures him.
In the next scene, Sun and Haley find Jake’s bag on the sidewalk. Gramps announces that Jake should’ve been home hours ago. Haley accidentally tells Sun and Gramps of Jake’s plan. Grampa starts to go into a rant about how selfish and immature Jake is before Haley cuts him off, saying that they don't know how hard it is to be the American Dragon, and lists all the sacrifices he's had to make, such as saving the magical creatures on a daily basis, lying to his own Dad about who he is, and saying good-bye to the girl he loves (which is Rose). She tells them it's not selfish to want a few days off for doing such hard work and to step off. Gramps sends Sun and Haley to rescue Jake and remarks that he has something to take care of.  At the construction site shown earlier, Chang has Jake chained to a rock impressed by sphinx hair (she thinks Jake is still a dragon). Jake claims he has somewhere to go, but Chang doesn’t believe him. She pulls out the chi and finishes the potion. However, the Dark Dragon didn’t rise. She worked out that Jake is a mere human. Sun and Haley then attack. Haley frees Jake and Sun and Chang fight it out. Trixie calls saying that Danica’s worried, and Jake replies that he a bit busy now, and asks to cover for him. Sun is eventually knocked out. As Chang is about to steal Haley’s chi, Gramps arrives and yells that Jake is the American Dragon. He turns into a dragon and fights Chang. Bananas is about to help out by knocking Jake out with a crane, only to be defeated by Haley. As a result, the two are defeated and they flee to a tunnel, where rocks trap them, but the hook scrapes Jake.
Later, Gramps says he’s cutting dragon training in half, going to explain that he's only 14 years old and deserves some time to hang with his friends. Haley said she can fill in, and the four fly to the graduation ceremony.
Meanwhile, Jake’s blood falls into the incomplete potion, with the Dark Dragon rising again.
The Dark Dragon Returns
- Lao Shi: As I've said before and will surely say many times to come, well done young dragon.
- Jake: Gramps, listen, there's something I need to tell you. About the cake accident, I...
- Lao Shi: It wasn't an accident. I know. And as a punishment, I'm cutting your dragon training in half this summer.
- Jake: Listen, I totally under... w-w-wait what now?
- Lao Shi: Jake, I train you hard because I know the enemies you have to face, but at the same time you're only 14 years old, you deserve some time to "chill" and "hang with your peeps".
- Sun: And there's no reason why Haley can't fill in from time to time. She did a great job this week.
- Haley: I did?
- Sun: You most certainly did. But a quick piece of advice: stay away from essence of troll.
- Lao Shi: Come young dragon, we have a graduation to attend.
- (Jake, Sun, Lao Shi, and Haley transform into dragons and fly off)
- Jake: So there you have it; the week that I wasn't the American Dragon. That night at graduation I got to thinking. Being human was a wake up call. (Jake remembers the time when he battled the Guardian Serpent, the Moss Monster, 88 and 89, rescuing Fu from falling, and opens locker with dragon claw) Sure there had been some tough times, but having magical powers has kinda rocked. And not just in a saving the people I care about kind of way but in a cool everyday kind of way too. I mean, don't get me wrong; having a secret, double life is always going to be a balancing act. (Rotwood gives Spud, Trixie, and Jake there rewards) But with the help of my friends and family...
- (Susan, Jonathan, and Haley Long, Lao Shi, Sun Park, and Fu Dog cheering for Jake)
- Jonathan Long: Way to go Jakers!
- Jake: I know I can totally face anything life throws at me. (Jake and his friends throw there hats in the air)
- (Jake's dragon blood on the hook drips onto the ashes and the ground opens with the Dark Dragon rising)
- Dark Dragon: RAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAOOOOOOOOR!
The battle against Chang
- Haley: (accidentally tells Jake's plan) Oh look, azaleas are in bloom.
- Lao Shi: PRANK?!
- Sun: Jake ditched his American Dragon duties on purpose?
- Lao Shi: (shouting in Chinese) Ihya asamiowa! Of all the immature self-serving...
- Haley: HEY! When was the last time either of you were the American Dragon?! (Lao Shi and Sun look shocked) Well as the little troll girl currently filling the position, let me tell you its stinkin hard! I can't imagine it doing it 2 more days, let alone 2 more years. And to think about everything Jake's gone through: he's had to save magical creatures on a daily basis, lie to his own dad about who he is, say good-bye to the girl he loved, all to protect a mystical world that nobody knows about! He may be the American Dragon, but he's also a 14 year old kid who just wanted a couple days off. If that makes him immature, fine. But self-serving? With all due respect to both of you... STEP OFF! (Sun and Lao Shi are speechless) Heh, I crossed the line with that step off part didn't I?
- Lao Shi: Sun, you and Haley track down Chang and rescue Jake.
- Sun: But Lao Shi, what about you?
- Lao Shi: I have something to take care of.
- (scene cuts Jake being held hostage in a chain with sphinx hair by Chang)
- (Bananas B pours Hydra Scales in the fire)
- Jake Long: (struggles with chains) Yo Chang, nothing personal, but I kinda got someplace to be. So if you don't mind...
- Chang: SILENCE! These chains are reinforced with sphinx hair, rendering you powerless. In the mean time the chi of the American Dragon is mine.
- (Chang takes out Jake's chi and she throws it in to the fire)
- Bananas B: Yo, Changetty-Chang. (gives Chang the Phoenix Feather) Say dem magic words.
- Chang: (goes to the fire) And with the drop of a Phoenix Feather: The Dragon of Darkness shall rise from the ashes. (drops the Phoenix Feather in the fire and nothing happens)
- Jake: Okay, not a bad show. But the ending isn't really living up to the hype. Can I go now?
- Chang: SILENCE! Why didn't the spell work? Wait... Jake's chi should have taken dragon form.
- Bananas B: What are you sayin' den? He's not a dragon? 'Cause that would mean...
- Haley Long: That you answer to me! Ya heard.
- (Sun Park breaths fire at Chang and Haley frees Jake)
- Jake: Haley? Ughh... What happened to your face?
- Haley: (shows her troll face)
- Jake: (hears his phone) Never mind cover me for a sec.
- Haley: It's what I do. HIYA!
- Trixie: (on the phone) Yo Jakey, where are you? Graduation's about to start and Danica's been asking about you.
- Jake: (on the phone) Running a little late, but hey it's what I do. You and Spud cool to...
- Trixie: Cover for you? Hey baby, it's what we do. (hangs up) Heyy yo stop the music! (steps up to the podium) Give a warm welcome to Arthur Spudinski and his...um...comedy stylings.
- Spud: (pulled onstage) Waaah. Umm...oh...hi. (make fart noises with his armpit & starts playing a tune)
- (scene cuts back to the battle)
- Chang: Sun Park? I thought you were all about peace and love.
- Sun Park: And what I'd really love is to give you a peace of THIS! (tries to hit Chang, but Chang grabs her tail and throws her) Woah!
- (Sun gets thrown and its a rock and gets knocked out)
- Jake and Haley: Sun!
- Chang: So, I'm thinking Jake Long is no longer the American Dragon. And since his little sister is next in line that would mean you've got something I want.
- Jake: Leave her alone, Chang!
- (Chang knocks Jake out of the way)
- Chang: Pathetic human. Who are you to tell me what to do?
- (Lao Shi arrives with the dragon chi)
- Lao Shi: His name is Jake Long! And he is the American Dragon! Hiya! (throws the dragon chi at Jake and he transforms into the American Dragon)
- Jake: My dragon chi. But Gramps, how did you...
- Lao Shi: An early graduation gift from the Dragon Council. You've earned it.
- Chang: How very touching? Unfortunately that chi is mine! (fires a magenta claw beam and tries to get the chi, but Jake blasts it with his fire)
- (Bananas B goes to the giant machine to hit Jake with the giant hook)
- Bananas B: Don't worry, Chang. I'll save ya. (pulls the levers on in the machine)
- Haley: Not today, Monkey! Haa! (jumps on Bananas B)
- Bananas B: Outta my way, you Bugly Troll Girl!
- (the machine hits the cliff edge and rocks fall on Chang)
- Lao Shi: Jake! Look out!
- (the giant hook scratches Jake's arm)
- Jake: YOW!
- Haley: Hiya!! (Haley kicks Bananas B off the machine)
- Jake: You know what Chang? Being the American Dragon, kinda rocks. Oh and speaking of rocks...
- Chang: (sees the rocks falling) What? NOOOOOOOOOOOOOOOOO!
- (Chang and Bananas B run inside a cave and the rocks trap them)
Characters in the Yearbook
- Danika Hunnicutt
- Sun Park
- Professor Hans Rotwood
- Brad Morton
- Vicky Fickling
- Sara Oracle
- Arthur Spudinski
- Trixie Carter
- Mrs. Merker
- Mrs. Rose
- Mr. Carlson
- Mr. Lott
- Mr. Mack
- Kyle Wilkins
- Miss Kinder
- Stacey Wintergrin
- Jake Long
- Dolores Derceto (flashback)
- Huntsboys 88 and 89 (flashback)
- Hobgoblin (mentioned)