Sly and the gang arrive to make Panda King their ally in exchange for saving his daughter Jing King from General Tsao.
Tropes:
- Arc Villain: General Tsao.
- The Battle Didn't Count: General Tsao may be the main antagonist, but the boss battle with him takes place in the middle of the chapter rather than in the end like with the other villains before and after.
- Battle in the Center of the Mind: Sly has to battle the Panda King within the latter's mind via the Guru's magic.
- Chinese Vampire: In "Vampiric Demise", Tsao uses an ancient crypt infused with his family's dark magic to summon hopping vampires (who are all praying mantises) to patrol the streets for him. Sly and Panda King both work together to destroy the crypt and undo the curse.
- Land of Dragons: The main setting is a traditional Chinese village located in the mountains. The climax also has a dragon as the final boss.
- Living MacGuffin: Panda King and Jing King. Help rescue Jing King from General Tsao and the Panda King will join the Cooper Gang as its Demolitions Expert.
- Nightmare Hands: One of Tsao's attacks in his boss battle is when he summons hands to reach up and grab Sly. The only way to avoid it is for Sly to climb up a bamboo shoot.
- Nostalgia Level: At one point Sly and The Panda King have their minds connected, and Sly is taken back to the boss fight with Panda King from the first game.
- Operation: [Blank]: In "Operation Wedding Crasher", Sly, Penelope and Murray break into and steal the contents of Tsao's treasure temple and pass it off to Bentley. Panda King and Guru tunnel under the palace to create an escape route for Jing King while Sly ensures that Tsao's security systems don't detect it. Bentley uses his grapple-cam to lure Carmelita to Tsao who will arrest him.
- Powder Trail: Penelope has to race against one with her RC car to save Murray from a barrel of gunpowder he is tied to.
- Split Personality: The Panda King is briefly shown to have one. He actually has to talk his raging, violent half into cooperating before you can continue the mission.
