CHOR, after he has crushed many devilish organizations and eliminated a lot of baddies, keeps himself far away from the hustling and bustling mainland to lead a peaceful hiberated life with three beautiful ladies, YEE, HUNG and YING. Yet, the absence of challenge and stimulation make CHOR get tired of the prosaic quiet life.
To see whether the kidnapping is really done by SIT, CHOR sneaks into SIT's house where he finds HUNG is trying to cure SIT's daughter who is also suffering from a strange illness.
At the funeral, GOI's daughter LAI comes to life again and claims herself SIT's daughter YAN. Everyone is shocked and thinks that YAN's spirit has clung to LAI but CHOR senses something fishy and decides to goes to GOI’s mansion to investigate. He is puzzled when he finds that YAN’s room is exactly as LAI described.
A pupil of Hung Tung Clan is killed by the SNAKE SWORD and Leader MA decides to take revenge on SIT and his son BUN. CHOR comes in time to explain about the lost sword but MA is determined not to give up.
Repenting, SIT agrees to the marriage between YAN and LAN and helps them to live on their own. Depressed, SIT and GOI postpone their duel.
When people are blaming CHOR, WU appears and explains that it is all the treacherous plot of a secret gang. The clans swear to find out the truth.
HANG explains his situation to CHOR and WU and they drink and talkabout their past experience. Admiring HANG’s superb kung-fu kung-fu, CHIN intends to hire him to work for him but is chased away by HANG who warns him not to commit crimes.
To investigate where his foe is, HANG asks for the identity of the SUPREME, leader of 'THE BLOODY HAND', from the assassins but fails. He then kills the assassins to force the leader to appear.
Knowing that CHING is PRINCESS WING CHING, KAM CHUN WAN confines CHING whom he believes will help reviving the status of the KAMs. CHING threatens to kill CHI CHUNG unless CHUN WAN releases her. OLD LADY KAM uses THE DRAGON ROD given by the ex-emperor to stop her.
TING of the BAT PALACE claims that MASTER BAT can help HANG to find out the murderer of he kidnaps CHING. HANG agrees reluctantly.
HANG refuses to tell CHOR why he must take CHING with him. To protect CHING, CHOR defeats HANG but is himself seriously injured.
Misunderstood to be working with TING to kill ABBESS CHING FUNG, HANG is surrounded by the disciples of WAH SHAN CLAN but escapes with CHUN's help. ABBESS FU MUI is suspicious of the murderer's identity since CHING FUNG is killed by THE TAI IN FINGER of WAH SHAN CLAN itself.
On the way to the Peaceful Mansion, CHOR and WU find that the Chun Wai Escorts and Luk Fook Escorts are disputing over the lost WHITE JADE GUANYIN. Exposing the truth, YUEN succeeds to reconcile, much to the admiration of CHOR and WU.
Finding that Siu is poisoned by the food when they are having dinner at the Peaceful Mansion, the clans' leader suspect YUEN of killing them in order to be the leader of the alliance. Trusting YUEN, CHOR persuades the others to investigate the truth.
To avenge his father, HO induces YUEN to leave the mansion, removes the corpses of the clan leaders whom he murders and imputes crime to YUEN. Knowing that he has fallen into a trap, YUEN returns to the mansion explaining the truth. Ashamed, HO kills himself.
CHOR rescues CHING who is kidnapped by HANG. Advised by YING to return to the capital, CHING requests CHOR to go with her.
The FOURTH LORD forces the EMPEROR whom he kidnaps to yield the throne but is rejected.
HANG is grateful for CHING's assistance while he is attacked and injured by the assassin.
Resisting the attack of the BAT PALACE's assassins, CHOR helps the injured LING to escape.
When CHOR and WU find CHING, HANG, unwilling to make use of CHING, has secretly left. Sympathizing HANG, they decide to help him.
Falling down from the cliff, HANG is not killed and gets along with the BAT PALACE’s assassins waiting for the chance to take revenge.
To escape, HANG jumps into the sea but is still chased after by the assassins. Exhausted, he faints at the coast.
OLD LADY KAM sends CHI CHUNG to bring LING home but LING refuses. Alert at LING's strangeness and her private talks with CHI CHUNG, CHING suspects her to be the traitor and informs CHOR.
Forced to serve the prisoners in the BAT PALACE, Tung meets the EMPEROR who is kidnapped by MASTER BAT. Talking with each other their own experience, the EMPEROR and TUNG become friends.
People of the BAT PALACE suddenly attack WU and CHOR but are defeated. Believing that it is a means to test their kung-fu, HANG asks the others' to be careful.
Killing his foe, HANG leaves the Peaceful Mansion and decides to live in the CHING LEUNG TEMPLE as a monk. The clans also depart believing that the evil is destroyed.
Finding out that KWAN is bribed by the FOURTH LORD to kill CHING, CHOR apologizes to OLD LADY KAM for his impulsiveness.
WU tries to explain his situation to KO who, determined to break their connection, rejects to meet him. Pleased, ABBESS FU MUI decides to appoint KO the clan leader before she departs for the Taoist Meeting.
Knowing the FOURTH PRINCE's crime, CHOR informs him that he will get back the imperial seal. Although the LORD is well prepared, CHOR manages to steal the seal.
To help DR. CHEUNG to escape, the EMPEROR pretends to fall ill and asks DR. CHEUNG to get the herb. Suspicious, TING sends the masked HUNG to get the herb.