The island of Taishu is known for jade and the dragon. The jade is not like any other, but is the true jade that feeds the emperor and gives him his power. Without the jade there is no emperor, just a man. The empire is in trouble because the emperor is just a boy that must flee to Taishu with rebels in pursuit. Along the way he becomes friends with a fishergirl and against tradition brings her to court. The danger against his life grows as the rebels plan their attack on the island from the mainland.

In the strait between the island and the mainland a dragon is bound underwater. Monks run the forge and the sound of the hammer can be heard across the water, but not everyone believes in the dragon. As the emperor lands on the island, the dragon risks being freed as pirates kill the monks that hold the beast and break the chains that hold her. Han, a boy enslaved by the pirates, finds that he has become part of the magic holding the dragon back, but the dragon is very strong.