Xiangliu is a huge and intimidating snake-like creature, as it is based on the Xiangliu that exists in Chinese mythology. That is said to cause floods and overall problems in nature wherever it went. It is gray and has one major head, the biggest, while it has eight other smaller heads, nine in total.
Xiangliu is seen sleeping in the scene it is in, it is having a good sleep, but when Larry and his fellow "companions" walk in, it notices them after a while, and it isn't happy to see that people are walking on it's territory.
So it tries to intimidate them, but at this point, there isn't any point in running away, they are basically stuck there, so Xiangliu starts intimidating them, but instead of walking away, Lancelot starts fighting with the beast, and it goes okay, but not to well, and then Larry Daley joins the fight, but instantly gets grabbed and toyed with. At this point, Larry cannot do anything, he is trapped with a big beast-snake. The Xiangliu tries multiple times to eat him, but he always manages to get out of it last second, so seeing his dad helpless, Larry's son, Nicky, joins, and now they are starting to get momentum, Lancelot and Nicky are doing well at fighting the big Xiangliu.
Larry manages to escape, and slowly falls at the Xiangliu, but this time, he has an item with electric in it, so he falls, just as the Xiangliu is about to eat him, he electrifies the Xiangliu, giving them time to escape. It is unknown exactly what happened to the Xiangliu after the battle, but it is most likely that nothing really changed to it and it continues to be a normal statue.
The Xiangliu is one of the most if not the most serious animal villain in the Night of the Museum franchise.
Unlike the Xiangliu from Chinese myths, this one had a lot longer neck for each head, the traditional design of a Xiangliu either have shorter necks, or only one neck for all nine heads.
The Xiangliu is the only villain from the Night of the Museum franchise to be a game changer.