Arc 4Dragon God Hall and Shrek's Bargain
Gu Yunxiao founded the Dragon God Hall by bringing the Earth Dragon Sect and Heavenly Dragon Sect into his plans, then returned to Shrek Academy and negotiated a costly treatment for Ma Xiaotao's evil fire. The arc left Ma Xiaotao's fire suppressed for six months while Gu Yunxiao's new organization and ties at the academy continued to grow.
- Gu Yunxiao absorbed a hundred-thousand-year soul ring, strengthened Snow Empress, Ice Empress, Bi Ji, and Zi JI with immortal herbs, and discovered that his dragon blood could influence Dragon Clan beings.
- Gu Yunxiao founded the Dragon God Hall in Dragon City and secured the Earth Dragon Sect and Heavenly Dragon Sect as partners by offering dragon blood and promising support.
- Gu Yunxiao assigned Snow Empress and Ice Empress to watch the two sects, sent Zi JI to find dragon-blooded soul beasts, and returned to Shrek Academy with Bi Ji.
- Gu Yunxiao joined the freshman assessment team with Wang Dong'er and Xiao Xiao, while Jiang Nannan grew closer to him and moved into his hotel suite.
- The Ice God warned Gu Yunxiao that Wang Dong'er carried divine power and a sealed, incomplete soul, but he refused to destroy the divine consciousness within her.
- Jiang Nannan confirmed to Tang Ya that she and Gu Yunxiao were together, while Tang Ya decided to break up with Bei Bei after their conflict over Xu Sanshi.
- Gu Yunxiao demanded forty soul bones, including five hundred-thousand-year ones, or a supreme true-dragon treasure in exchange for ongoing treatment of Ma Xiaotao, and Mu En offered the Radiant Sacred Dragon's Dragon Core.
- Wang Dong'er defeated the freshman assessment team's first opponents alone, and Gu Yunxiao accepted Yan Shaozhe's offered item before using the Ice God to suppress Ma Xiaotao's evil fire for six months.