The Village of Smiles is suffering from the threat of the event known as "Day of Rising Ground." The human boy known as Kiriha appears and informs Taiki and the others about what is happening, offering his help but only if Taiki joins his side and serves under him. He mentions something about the "Code Crown" as well.
The generals Lilithmon, Tactimon, and Blastmon meet with Bagramon to discuss their current problem with the humans after a brief appearance from Baalmon. Not only does Bagramon state that Team Blue Flare isn't the only problem, he also mentions another bunch of humans with one of them wielding a red Xros Loader. Bagramon tells them to dispose of the humans at once. They do not want the humans to have the power to DigiXros. Tactimon releases MadLeomon from prison as a last chance to redeem himself by destroying the humans. It is his plot to destroy the village of Smiles by having a Drimogemon dig underground, thus causing all the giant bamboo shoots to erupt.
Meanwhile, at the Village of Smiles, Shoutmon tries to decide on a logo for his and Taiki's forces as well as a name for the team. They are interrupted when the ground begins to shake and break apart, revealing large shoots of bamboo. Jijimon mentions this as the Day of Rising Ground but adds that it is too early for this event to be taking place. Unfortunately, Zenjirou gets caught by one of the bamboo spires, causing him to be suspended high in the air. While he is stuck, Zenjirou tells Taiki that he is afraid of heights begs him to get him down.
The human known as Kiriha then appears and informs Taiki and the others about Tactimon's plan, offering his help but only if Taiki joins his side and serves under him. He also mentions something known as the "Code Crown." Issuing a challenge to Taiki, Kiriha reloads MailBirdramon and a Golemon and uses DigiXros to fight Shoutmon and his friends. After MailBirdramon finishes attacking with the DigiXros with Golemon, he knocks him aside like unwanted trash. Taiki declines Kiriha's offer, saying he doesn't like Kiriha and there seems to be something dark about him. Kiriha then departs on MailBirdramon just as MadLeomon attacks the Village with several Apemon and a Pteramon. Ballistamon and Shoutmon DigiXros into Shoutmon X2 while MadLeomon absorbs the Apemon to become MadLeomon (Final Mode) and overwhelms Shoutmon x2.
Nene appears and talks to Kiriha as they watch the battle from afar stating she "likes to watch strong guys." Cutemon appears to help rescue the villagers, Dorulumon following close behind to protect his charge. Dorulumon comes to Shoutmon X2's aid, and Taiki remembers Dorulumon from his dream. Upon being told by Zenjirou of a shiny area within the bamboo, Taiki uses DigiXros on Starmon and Pickmons to make a sword for Zenjirou to throw at the Drimogemon who is causing the destruction underground. Destroying the problem digimon, the bamboo roots retreat back underground. When MadLeomon gets distracted by the bamboo disappearing upon Drimogemon's destruction, Shoutmon X2 and Dorulumon take this chance and attack MadLeomon, forcing him back to his normal form. MadLeomon then expands into a ball-like self-destruct mode and breaks up Shoutmon x2.
Recalling his dream (from episode 1) Taiki uses DigiXros on Dorulumon, Shoutmon and Ballistamon to make Shoutmon X3. Shoutmon x3 manages to toss MadLeomon into the sky and finishes him off with his Victorize Boomerang attack. Kiriha is impressed with Taiki's skills and plans to recruit him as he and MailBirdramon flee. Dorulumon and Cutemon leave while Tactimon learns of MadLeomon's destruction. After defeating MadLeomon for good, Taiki decides on a team name: Xros Heart. As the team is celebrating, a gold diamond appears in the sky from MadLeomon's data. Nene then appears before the gang for the first time, introducing herself and telling them that the gold diamond that appeared is the "Code Crown."