Arc 3Asgard and the Avengers
Xia Yu helped Thor regain Mjolnir, visited Asgard, and returned to Earth to build an independent Avengers team. After recruiting Hulk and training the group, he helped Peggy Carter regain her youth and prepared a reunion with Captain America.
- Xia Yu stopped Thor from retrieving Mjolnir, then defeated Ivan Vanko at the Stark Expo and destroyed the Iron Soldiers while Tony Stark and James Rhodes fought in the air.
- Xia Yu joined Thor in New Mexico, revealed that Odin was alive, and watched Thor regain his powers and defeat the Destroyer.
- Xia Yu traveled to Asgard, learned Odin's plan to make Asgardians mortal, absorbed the Eternity Flame, and swore an oath of brotherhood with Thor before returning to Earth.
- Xia Yu helped Nick Fury establish the Avengers Initiative as an independent team, and Tony Stark, Thor, Captain America, and Natasha agreed to join.
- Xia Yu forced Bruce Banner to face the Hulk in the Sahara, fought alongside the Avengers, and persuaded Hulk to join the team and let Banner return.
- Xia Yu began training the Avengers in the Simplified Yijin Jing, then used a Rejuvenation Pill to restore Peggy Carter's youth and arranged a reunion with Captain America at the Stork Club.