When an evil demoness attempts to enter the realm of humans, a Taoist priest and his two fairies battle her and steal her Bead of Hell. The conflict re-emerges one thousand years later in modern-day Hong Kong, where a police captain unknowingly takes in one of the fairies who's being pursued by the demoness.

To save the village from paranormal menaces, the One-Eyebrow Priest deals with and battles a host of mysterious creatures including: a little mischievous Chinese vampire; a lustful female ghost; the spirit of a woman murdered by a club owner and a European vampire and his blood-sucking pet bats.