In the present day, a woman, Annie (Lucy Lawless), wakes up suddenly from a vision. She shakes her husband, Harry (Ted Raimi), awake to tell him that she is convinced that she was Xena, the Warrior Princess, in a past life. Harry dismisses her dream as indigestion and believes that she is obsessed with the television show. Annie is undeterred and insists that, not only did she use to be Xena, but also that she has been going into a trance and appearing as the Xena vigilante that has been protecting members of their community. Concerned, Harry reluctantly goes with Annie to Dr. Mattie Merrill (Renee O'Connor), an expert in past lives. Harry does not believe in this new age practice and is alarmed to find the waiting room filled with people dressed as famous historical people. Mattie hypnotizes Annie, who wakes up filled with horror. She realizes that she was not Xena. She was…Joxer.

Hearing Annie's scream, Harry rushes past Marco (Robert Trebor), the receptionist. He tries to console Annie, who is distraught after learning she was the comic relief for her hero. Annie also realizes that Mattie's soul was in the past with her. Mattie agrees to hypnotize herself and is shocked to discover that her "treatment" is real. She admites that her practice was conceived by her and Marco as a scam. Harry remains skeptical, and allows himself to be put into a trance to prove that it is a hoax. He is surprised to find that the visions seem real, but he is uncomfortable continuing the trance. As he starts to leave the office, Marco enters with a revolver and a bomb and stops him. He ties up Harry, Annie and Mattie, starts the bomb's timer, and leaves.

Realizing that Xena escaped from similar situations, Harry has Mattie regress all of them back once again. Even more confused by the memories, Annie is convinced that she was actually Xena and unsuccessfully tries to help them escape. After one last past life regression, Harry realizes that he is the reincarnation of Xena and that he has been acting as the vigilante. After Harry releases everyone and defuses the bomb, Marco enters the room and congratulates them on their success. Laughing, he morphs into the God of War, Ares (Kevin Smith).

When confronted by Harry, Ares explains that he has a chance to rule the world in the coming millennium. He wants Xena to be by his side, regardless of the body her soul is inhabiting. With his past life memory restored, Harry refuses to join forces and they fight. Fortunately, since no one worships the Greek gods anymore, Ares has very limited powers. With the help of Annie, Harry is able to temporarily defeat the weakened god, who promises a rematch and flees. Realizing that Mattie must be Gabrielle, and, therefore Harry's soulmate, Annie decides to allow them to renew their relationship. As Harry and Mattie get reacquainted, Annie consoles herself with a rousing rendition of "Annie, the Mighty."

In the forest, the Amazon Queen Marga (Sela Apera) triggers a trap while being pursued by an unknown hunter. She struggles free only to snag another tripwire along the trail, causing ropes to lash her against a tree. Frantically freeing herself once more, she runs smack into the clutches of Prince Morloch (Sandy Winton). With a kick to his chest, she escapes but is quickly stopped in her tracks when a razor-sharp star hurled by Morloch cuts deep into her leg. Standing over her with his deadly weapon, Morloch calmly explains that before she dies, she'll deliver a message for him. Meanwhile, Xena (Lucy Lawless) and Gabrielle (Renee O'Connor) arrive at the Amazon village where Varia (Tsianina Joelson) reveals that Amazons have been disappearing and that Marga has gone after whatever is hunting them. Later, when Varia defies Marga's orders and sneaks off to find her, Xena follows and spots the Queen collapsed and near death. Marga tells Xena that if Varia dies, their village will be lost. She implores Xena to protect the young Amazon and teach her how to be a true warrior. Varia approaches as Marga relinquishes her royal necklace to Xena and passes away. Back at the village, as Marga is being laid out for her funeral, Gabrielle discovers an ominous message hidden in the Queen's clothing, mocking Marga's skills as a warrior and challenging all comers.

Determined to find Marga's killer, Varia sneaks off again but is quickly caught in a trap that yanks her skyward. As she struggles to free herself from Morloch's right hand man Raczar (Craig Hall) and his henchmen, Xena arrives, overpowers the attackers and sends them fleeing back to their camp. When an irate Varia tries to follow, Xena fashions a leash from the chain of a metal trap and secures it around Varia's neck. Back at Morloch's tent, Razcar informs the prince of their run-in with Xena. Feeling bored and unchallenged, Morloch is thrilled by the news and orders his men to capture Xena so he can determine if she's worth hunting.

As the henchmen approach, Xena still refuses to unchain Varia, who lets out a whistle and reveals their location. Leaving Varia chained to a log, Xena takes off and quickly defeats all three men. Traveling on, the two women take refuge in an abandoned temple where Xena explains to Varia that she can't save her village on her own and that she's protecting her at Marga's request. When Varia suddenly lashes out, Xena challenges her to a fight and easily defeats the young Amazon. As Varia crashes backward onto the rotting floorboards, the floor splits open and she falls through. Rushing immediately to Varia's rescue, Xena finally wins her respect and loyalty. Later, as Morloch's men trudge through the woods searching for their prey, Xena grabs a henchman without being seen. Taking his weapon and the keg of flammable liquid he is carrying, she and Varia gag him, suspend him from a tree and use him as bait to lure Morloch. While they watch from a distance as Morloch's henchmen cut him down, Morloch secretly watches Xena. Suddenly sensing trouble, Xena pulls Varia behind a bush, switches clothes with her and manages to get the drop on "Morloch," clocking him with her chakram. But she quickly discovers that her victim is actually Morloch's henchman dressed as the prince. Spurred on by the competition, a gleeful Morloch appears in the entrance to a burial catacombs and invites Xena inside. Armed with her chakram and a bow and arrow, she enters and a deadly hunt commences. When Varia, unwilling to wait outside any longer, follows her inside and sneaks up on Morloch, Xena's hurls her chakram, slicing Morloch's blade in half before he can kill Varia. The women race to the entrance of the catacombs, but Razcar and his men are blocking it. Using Varia's boots as a decoy, they lure Razcar's gang towards the keg they've ignited, which explodes in the men's faces.

Xena and Varia escape into the woods, but Varia is injured by another trap. Meanwhile, Morloch's men ignite an enormous fire that surrounds the two women. Using a tree as a catapult, Xena hurls Varia over the flames, but Morloch's men catapult a net that traps her in mid-air and they haul her in. After feigning unconsciousness, Varia suddenly springs to life and corners Razcar at knifepoint. Terrified, he releases his weapon and begs her to find and kill Morloch. Varia releases Razcar, only to be knocked out once more by the prince. Xena follows Varia's screams to an arena where she spots her friend strapped to the top of a rickety tower. A fierce battle ensues. But just when Morloch thinks he's got the upper hand, Xena uses his insane bloodlust against him and she ultimately prevails. Later at the Amazon village, Xena hands Marga's royal necklace to Gabrielle who places it on Varia, officially making her Queen of the Amazons.