It first aired on January 15, 2001 in Japan and on July 6, 2002 as a one-hour special with The Blade Raider in the United States.
Loading their Blades, Tyson Granger and Kai Hiwatari launch out their Beyblades to begin their battle. Attempting to avenge Carlos for how Kai had mistreated him, Tyson has his Blade, Dragoon Grip Attacker clash with Kai's Blade: Dranzer S. As Kenny, Andrew, and a few other people watch the ongoing battle, Kai appears to be a formidable opponent for Tyson. This is seen at how Dranzer appears to be absorbing every hit and smash that it receives from Tyson's Beyblade. Tyson is however able to launch an attack where his Blade collects wind in order to form a tornado that traps Dranzer.
Just when Tyson believes that the battle is in his favor, Kai decides that he has had enough and commands Dranzer to evade the tornado and come spiraling down to land right on top of Tyson's Bey and destroy it. This greatly shocks Tyson, as he seems to not be able to believe the sight that has happened before his eyes, along with Kenny and Andrew. Dranzer S is then recalled back to Kai, who is quite reserved of the fight he just won. He shows Carlos that his strategy of Dranzer absorbing Tyson's Blade allowed it to defeat it. He tells Carlos to follow him as Kai escorts him away.
Later on, Tyson is frustrated by his battle with Kai, now forced to remake another Beyblade for him to use in his Beybattles. Feeling sorrow and unhappy for Tyson, Kenny and Andrew agree to help Tyson reconstruct a new Beyblade, this time promising to make it even stronger and better than before. Happy to hear this, Tyson accepts the help of his friends. Andrew then goes on to reveal to Tyson the goals of the Blade Sharks, a Beyblading group whose goal is to find "the ultimate Blade" for their leader, Kai Hiwatari. This ultimate Blade is supposed to contain "the ultimate Bit-Beast"; Bit-Beasts which are spirits of animals such as lions, tigers and even dragons that are enchanted in a Blade. Tyson is intrigued by the advent of Bit-Beasts, while Kenny goes on to formally introduce Tyson to his laptop. Kenny reveals that a Bit-Beast is enchanted in his own laptop, known as "Dizzara", or "Dizzi" for short. Kenny remembers the first time he met Dizzi, it was the middle of a thunderstorm that was happening outside where following a power outage, a burst of electricity struck his laptop and when he opened it after the storm, he was surprised to find Dizzi there. Now interested and knowledgeable with the advent of Bit-Beasts, Tyson pledges to defeat Kai in a rematch with a new Blade.
Elsewhere at the Blade Sharks' headquarters, Kai has some Blade Sharks hold Carlos against his will as Kai commands for Carlos' own, personal Blade to be destroyed before his very eyes. Despite Carlos' pleas for forgiveness and apologies for his loss against Tyson, a group of Blade Sharks follow their leader's orders when they launch their own Blades to clash with Carlos' Blade in a Beystadium. After some hits and smashes, they are able to fully destroy the Beyblade of Carlos which as a result, traumatizes Carlos. After this, Kai is approached by two other members of the Blade Sharks who reveal to Kai that from their sources, a Beyblader is in the process of building a new Blade with the help of a boy who talks to his laptop. Amused by this, the Blade Sharks ask Kai if they could possibly kidnap the boy, just to find out how much intelligence they really have on Beyblade and to halt the Beyblader who is building a Blade. Kai expresses how the idea is actually not bad of one and allows them to commit it.
The following day, Tyson gets to some training when he is able to fully remake his old Blade into a new, enhanced version. Facing Andrew in a Beybattle, the new Blade seems to have better power than before. However, Kenny discovers that it is still not enough power to meet that of Kai's Dranzer S, much to Tyson's dismay. While Tyson and Andrew continue their prolonged battle, Kenny remembers that if he were to go back to his house, he could definitely collect more information on Beyblading that could potentially and successfully aid Tyson. Accepting this, Kenny tells Tyson and Andrew that he "forgot something" at home and needs to leave in order to retrieve it. Tyson and Andrew allow Kenny to leave and say their goodbyes, with Kenny dashing to his house. Unbeknownst to him however, are the two Blade Sharks who are to accomplish their mission of kidnapping Kenny.
Ambushing Kenny with their Blades, Kenny is trapped by the two Blade Sharks and is hopelessly kidnapped by them, while crying out for Tyson's help. His yells for help were not able to get through but were noticed by two kids who suggested they advise Tyson about it. Sprinting forward to Tyson's dojo, they announce to Tyson and Andrew that two members of the Blade Sharks have unfortunately kidnapped Kenny, and is now expected to be held hostage at the Blade Sharks' headquarters. Surprised, Tyson exclaims that they must go and rescue their friend back. Just as they do this though, Andrew tells Tyson and although he is flattered by Tyson's wanting to help, his Blade is not nearly on par with Kai's Dranzer S. In order for Tyson to help, he must have his Blade gain more strength to defeat Kai or else their plan will have most likely failed, either way. Tyson knows that Andrew is right and takes his advice, while Andrew and the two kids tell Tyson to follow them as they plan to rescue The Chief. At first, Tyson follows them but takes a look back to his dojo. Removing his shoes, Tyson enters his dojo to do one last thing before he goes.
Approaching the sword of the Dragoon, Tyson deeply asks for the power of the Dragoon to help him win in his fight with Kai and to ultimately rescue Kenny. The Dragoon, which has helped Tyson's family for generations, has been a helpful aid to the Granger family, as Grandpa had told Tyson that if he ever needed help, he would just need to ask the Dragoon. Although he requested, the sword gives him no reply as Tyson proceeds to leave the dojo. Just then however, Tyson is alarmed to find the actual spirit of the Dragoon escape the sword and rise up as the blue dragon. Immediately, Tyson discovers that the Dragoon is an actual, living creature and that he was not daydreaming when he was training for his Beybattle. The Dragoon heads at Tyson, aimed for his Beyblade and encases itself into his Blade. Shocked by the sudden occurrence, Tyson finds out that the Bit Chip of his Blade changed from a blank one to depict the Dragoon. With his new Blade, Dragoon S, Tyson is ready to face Kai once and for all.
As Kenny is held hostage when the Blade Sharks steal his laptop to find Dizzi, Kenny refuses to give them any insight on Beyblade. Tyson, Andrew, and a few other kids then arrive to rescue Kenny. While Kenny is delighted to see Tyson, he reminds him that Tyson's Blade is not powerful yet but Tyson removes Kenny's scruples when he shows the new Dragoon motif on his Beyblade. Now that Kenny is filled with hope, Tyson is ready to bring back Kenny but the Blade Sharks bring a swarm of themselves and aim their Blades at Tyson. Despite their efforts, Kai drops from the ceiling to command his legion not to interfere with the Beybattle, revealing that he instead, shall combat Tyson. The Blade Sharks do as so and give space with a Beystadium for Tyson and Kai to commit to their Beybattle.
Launching at the sound of Let it Rip!, Kai summons the Blade of Dranzer S whilst Tyson brings Dragoon S into the fight. Immediately when Dragoon lands in the BeyStadium, Tyson and everyone notice how Tyson's Blade is circling the Stadium at enormously fast speeds, so powerful that it manages to summon a tornado that traps Dranzer just like in their previous battle. As Dranzer is being sucked inside the vortex of the tornado, it appears to be launched out of the Stadium and makes Tyson think as if he won the fight. Kai tells Tyson not to speak too soon when Dranzer returns to safely land in the Stadium and continue the battle. As Tyson uses all of his power to unleash the fury that he confides in Dragoon S, it combats Dranzer S with many clashes as the two Blades battle one another. Due to the countless amount of barrages Dragoon and Dranzer are delivering each other, the two Beyblades begin glowing an aura. With a blue, wind-like one for Dragoon, there appears a blazing, red-hot one for Dranzer. With enough power already accumulated by the fight, the Beyblades summon forth their respective Bit-Beasts: the blue dragon and the red phoenix, respectively. Everyone is astonished by the appearance of these spirits, when these Blades fight each other.
Soon enough, the battle comes to a close as a tie when Dragoon S and Dranzer S are returned to their owners, Tyson and Kai, respectively. Kai reveals that just like he, Tyson holds a Bit-Beast in his Beyblade, in this case, the blue dragon. Kai's Dranzer S houses the red phoenix instead, something that intrigues Tyson. Kai allows them to rescue The Chief but Kai assures Tyson that the battle is not over, this confuses Tyson as Kai assures him that all will be explained soon enough. As Kai departs from the headquarters, his Blade Sharks follow suit.
Later on at noon, Tyson, Kenny, and Andrew walk home from the Blade Sharks' headquarters. As they are walking, Kenny thanks Tyson for saving him, happy to be back in the world of Beyblade. While Tyson dismisses it as it was nothing, Kenny is dissatisfied to know that he must get back home as soon as possible, due to the inclusion of Dragoon and Dranzer, Kenny must study more information on Beyblade. Tyson tells Kenny not to worry about it, as he, Andrew, and Kenny all walk home to rest from their wild encounter.
- Kai defeats Tyson, destroying the latter's Blade in the process.
- Tyson trains with a new Blade, Dragoon S alongside Andrew and Kenny.
- Kenny is kidnapped by the Blade Sharks.
- Tyson obtains the sacred Bit-Beast; Dragoon in his Blade.
- Tyson rescues Kenny and ends the battle with Kai in a draw with Dragoon and Kai's new Bit-Beast, Dranzer appearing.
- Dragoon Grip Attacker (Tyson's; destroyed)
- Dragoon S (Tyson's, debut)
- Dranzer S (Kai's)
- Various Generic Blades
Continued from Previous Episode
- Tyson is introduced to the advent of the Blade Sharks, Bit-Beasts and Dizzi, even though he already knew of it in the previous episode.
- In the original version, only Tyson, Kai and Kenny could see Dranzer and Dragoon. Andrew and the Blade Sharks members could not.