The Zebra Brothers attacked a human village in order to draw out First Squad. Evidently knowing in advance that warriors were buried there, they used their Ghost Lanterns to bring it to life and made it attack First Squad. The soldiers proved nearly indestructible, and most attacks did little but slow them down. Ultimately, Lin Chung instructed Mighty Ray to blast some nearby terraces containing rice paddies, releasing water which reduced the soldiers to mud.
The soldiers proved nearly indestructible, resisting virtually everything that First Squad could throw at them. They also demonstrated the ability to transform into a secondary form which equipped with spinning blades. They were capable of throwing fire balls.
The Terra Cotta army seems to be loosely based on the real world Terracotta Army, an extensive collection of sculptures discovered buried in China.