Sakura has the same recurring dream she had in episode one, specifically focusing on the boy wielding a sword in Chinese clothing. She hears from both Cerberus and Yukito that it might be a "foretelling dream". A new transfer student arrives from Hong Kong named Syaoran Li and is seated behind Sakura. He terrifies Sakura with his glares all day and during recess, he demands Sakura to give him the Clow Cards. On the way home, there is a lighting storm, but no rain. Cerberus explains Syaoran is from the Li clan, a famous family of Chinese sorcerers from which Clow's mother came. The same lighting storm for earlier appears and Sakura deploys to battle the Thunder card. Syaoran demonstrates his command over elemental magic and calls on thunder god to return the Thunder card to its original form. He instruct Sakura to use the Shadow card to encage the Thunder card so it could be captured. Thanks to Syaoran's constant derogatory remarks, Sakura is left feeling upset after a card capture for the first time.
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