In the Land of Dragons, the villainous Hun, Shan Yu, oversees a burning village and smirks.
Meanwhile, Sora and company land in a bamboo grove where they oversee a soldier talking to a dragon. Despite Goofy's warnings, Sora and Donald get the jump, only to discover that the dragon is Mushu, an old ally of theirs. Mushu explains that he is helping the soldier, Fa "Ping", get into the army to bring honor to "his" family. Goofy realizes that "Ping" is really a girl in disguise named Mulan, but Mushu convinces the trio to protect her identity while helping her survive.
"Ping" immediately makes a bad impression upon arrival at the camp, starting a fistfight among the other recruits. The commander, Li Shang, attempts to bring order, but the Heartless arrive, forcing Sora and company to help "Ping" fight them off. An impressed Shang lets the four join the army, but wants to see "Ping" prove "himself" by partaking in missions.
Eventually, after a few trials, the four are sent to a nearby mountain to scout out for potential Hun invaders. They only discover the burned village and make their way up to the summit, where Shan Yu awaits. "Ping" causes an avalanche to decimate Shan Yu's forces and saves Shang in the process, earning the captain's respect. But Mushu, in his excitement, accidentally exposes Mulan's identity, forcing Shang to kick the four out of the army.
As Mulan leaves, she notices that Shan Yu is still alive and races down the mountain to warn Shang. Though Shang still doesn't trust her, the Heartless' appearances are enough to convince him. Shan Yu arrives to hold the Emperor hostage, only for Sora and company to fight him off.
With Shan Yu's death, the Emperor explains that he has heard a great deal of Mulan's actions. Despite her crimes, she ultimately saved China, so all of China bows down to her. Just then, Shan Yu's sword glows, and Sora uses it to unlock the world's gate before he, Donald, and Goofy take their leave.
Tropes:
- Arc Hero: Mulan serves as this world's Guest-Star Party Member. She's a Required Party Member as "Ping".
- Arc Villain: As in the film, Shan Yu.
- Blade Lock: Sora can do this to Shan Yu during the latter's boss battle.
- Chinese Vampire: Some of Shang's men are turned into Nightwalkers after dying from fatigue.
- It's Personal: The destruction of the village mid-way badly gets on Sora's nerves. The Rapid Thruster army serving Shan Yu only intensifies the Keybearer's rage.
- Not His Sled: While this is an adaptation of the film Mulan, the way Mulan's identity is exposed is different: instead of her getting injured in battle with Shan Yu, Mushu accidentally blurts out her real name.
- Sweet Polly Oliver: Mulan, as per usual.
- Took a Level in Badass: Mulan becomes considerably more capable once she sheds her armor and "Ping" disguise. In gameplay, this means she gets full access to her combat abilities and Limit Break.
- Uncertain Doom: The villagers from the burnt-down hamlet are missing, but it is heavily implied that they became the Rapid Thrusters serving Shan Yu on the mountain battle, with Organization XIII claiming their hearts afterwards.
