Silk Fox has led you and your party of followers to this alternate entrance into the Imperial Palace. This landing pad will be your campsite for the duration of Chapter 4 (well, for the sake of this level anyway), though you probably won't ever be returning here given the short period of time it takes to make it into the Imperial Palace's Throne Room.
If you've made a point of speaking with Wild Flower throughout the game, you will already know that she is possessed by two demons fighting to drive one another from their mortal host. As soon as you set up camp here at the Imperial Palace, the two demons will enter a final battle in the young girl's mind and you'll be forced to help one or the other. Chai Ka is a righteous guardian demon (Open Palm), while Ya Zhen is a loathsome toad demon (Closed Fist). Choose carefully, then enter Wild Flower's mental battlefield and lay waste to the opposing demon.
If you decided to lend your aid to Chai Ka during the battle, the demon will thank you for keeping the young girl from harm and award you with the Guardian's Strength technique. If you decided to ally yourself with Ya Zhen, then you will have ultimately doomed Wild Flower and will receive the Mastered Evil technique as a reward from the toad demon. Both of these outcomes is also worth over 1000 experience points.
Before heading into the inner section of the palace, take a moment to browse through Zin Bu's wares again. Now that you've started a new chapter, the celestial merchant has two new items available - the Burning Essence gem and the Warrior of the Unyielding Heart technique.
This is the only jar in this particular chamber that contains any loot. Smash it for 5 silver pieces and a random essence gem (such as a Monk Gem or a Greater Warrior's Gem of Fate)
Welcoming Party
Four Imperial Soldiers are spending some leisure time at the bottom of these stairs. They obviously don't want you here at the palace, as they attack immediately when you enter the room. They're fairly easy, though, which makes this a good time to try out some harmonic combos.
Another two Imperial Soldiers, two Imperial Guards, and two Lotus Assassins confront you as you reach the top of these stairs. Give them the same treatment as you gave the last group.
After the second fight, along this western platform, you'll find a ceramic urn containing 500 silver pieces and a random essence gem (such as a Gem of Evil Thought or Gem of Gentle Mind), an empty jar, and a bookstand called The Lotus Monks. Along this eastern platform, you'll find a ceramic urn containing 500 silver pieces and a randomly placed essence gem (such as a Warrior Gem), an empty jar, and a bookstand called The Celestial Order, Volume 2. If you've read every volume of The Celestial Order up until now, you will automatically receive the Inner Peace technique.