|“Down this path is a– the blacksmith shop!”|
|— Nya, "Pause and Effect"|
The Dragon's Forge is a blacksmith shack in the Vermillion Swamps.
Kai discovered the Dragon's Forge on the map and when he entered the shop, he finds an unknown blacksmith. Kai fought the blacksmith and calls him a traitor. However, he realizes the blacksmith is his father, Ray, and discovered his mother, Maya.
Ray and Maya explained to Kai and Nya that they were forced to design armor for the Vermillion Warriors because if they didn't, Krux would put Kai and Nya in danger. When Ray and Maya told them they hid the Reversal Time Blade in a location only a combined Element of Fire and Water could reach, they tried to get their children to leave before Krux and Acronix could force them to retrieve it, but it was too late. Krux says the only way to undo Wu's Time Punch is with the Reversal Blade.
Build the elemental Fusion Dragon from fire and water and launch into the sky. Head to the forge where the evil Vermillion have trapped Ray and Maya and are forcing them to make their weapons. Fire the dragon’s crossbow and take down the powerful Buffmillion mech. Land on the roof of the forge, fend off Commander Raggmunk and Slackjaw's sword and axe attacks and enter the building. Seek out the hidden Dragon Dagger to activate the forge's chimney. Then free Kai and Nya's mom and dad and claim the Reversal Time Blade!