Sai Saici and the Dragon Gundam are sent down from the Chinese colony to fight for Neo China. He runs a bandit group called the Black Dragon Ring that uses a mobile dragon to plunder local villagers. Two monks named Keiun and Zuisen wonder what they will do when they see Domon and Rain caught in a fight. As the bandits attack, Domon fights them off. He sees the Dragon Gundam and prepares for a Gundam Fight, but the monks appear and ask him for a favor. Rain helps tend to the wounded while Domon listens to the monks’ request. They ask him to kill Sai Saici and explain that they are fighting monks of the Shaolin temple that was famous before the space colonies were established. To reestablish their fame, they sent Sai Saici to the colony to train as a Gundam Fighter. However, he returned as a criminal and has been terrorizing the people with his Black Dragon Ring. Domon doesn’t really want to do it, but the monks take Rain hostage. He drives off in his Core Lander, and the monks apologize to Rain for taking her hostage. Domon drives around in his Core Lander and encounters an annoying kid who tricks him into getting a ride. They drive to a town, and the kid gets them a job cooking and cleaning to get a place to stay. At night, a festival is held and Sai Saici’s bandits attack. Domon fights off a bandit using a flamethrower, and the Dragon Gundam destroys the building they are in. One of the bandits discovers Domon’s Core Lander during the fight and steals it. Afterwards, the Dragon Gundam and the bandits leave. Domon knows he will eventually fight Sai Saici, but he needs to get the Core Lander back first.
Domon and the kid arrive at the hideout of the bandits, which happens to be the Great Wall. The kid says he is familiar with the area and runs off to scout ahead. He betrays Domon by informing the guards where he is. Domon is tied up and hung from the ceiling while he is interrogated. Sai Saici appears, and Domon challenges him to a Gundam Fight. Sai Saici responds by attacking Domon with his dragon costume and knocking him out. The kid says he wants to stay with the bandits as a cook. Domon sits in jail, and the kid frees him and tells him it was part of the plan to get in. While Domon goes to get the Core Lander, the kid fights Sai Saici and takes the Dragon Gundam. He tells Domon that he’s really Sai Saici, and that Hiryu’u is an impostor. He explains he was separated from the Dragon Gundam during atmospheric re-entry, and the bandits stole the Gundam. Domon and Sai Saici then begin a Gundam Fight. Sai Saici attacks Domon with his dragon claws, and Domon counters with his beam saber. Sai Saici is able to trick Domon by planting feilong flags and moving quickly. Domon uses the Shining Finger, but Sai Saici moves away. He jumps up in the air and uses the Shining Finger again. He is about to destroy Sai Saici’s head when the monks point out it is a draw. Sai Saici managed to wrap his pointed braid around the Shining Gundam‘s head, and he could destroy it too. Domon agrees to the draw, and the monks thank him for his help. He tells Rain they have to visit Neo France and Neo Russia now to find the man in the picture.
Well, this episode certainly was a bit more interesting than the last two. The pilot of the Dragon Gundam wasn’t the dragon costume wearing moron I thought he was. Instead he’s a short annoying kid. Everyone in this episode was a bit ridiculous, including the Shaolin monks who take Rain hostage and then quickly apologize for it. I can see that the Shenlong Gundam of Gundam Wing was at least slightly inspired by the Dragon Gundam, especially the extendable arms that shoot out fire. One thing that was good about the end was that Domon didn’t win with his Shining Finger move and was forced to accept a draw.