Bloodshed follows the never-ending struggle of a swordsman's soul to make good of his skills.

The plot it involves getting rid of the Devil Clan, a gang of very efficient robbers who have never been caught. The depredations must have gotten more blatant because two constables, played by Pearl Cheung Ling and Tin Hok are both tasked with eliminating them. Pearl Cheung recruits Lam Gwong-Wing who is either the third constable of the title or an informant. Lam is a bit of a goof—he would rather lounge in luxury with beautiful young women peeling grapes for him than go after the Devil Clan—which seems to make a lot of sense—but he reluctantly goes along with her after she threatens him. Lam is literally grabbed away from her by the constable played by Tin Hok for his war for his parallel operation. There is a third figure, neither a constable nor a Devil Clanner. He is Wolf Warrior who simply shows up and kills people—lots of people.

Two young lovers, Yun Keng and Ching Shuang belong to opposing clans. Their relationship is a secret for a time. Once Master Diao, head of the Great Banner Clan, learns of this treachery he must execute his son by way of quartering. Ti Zhong Tang as well as Yun's hot headed brother, Yun Zheng try and coax the old man out of having his son put to death but to no avail. Just before the act is carried out, Ti knocks Yun Keng unconscious and he is willingly replaced by one of his brothers who is quickly killed. Master Diao and Ti swear to reveal the truth to no one. Ti vows to locate the whereabouts of the beautiful Ching Shuang so the two can be reunited in the hopes that their love will one day rebuild the Great Banner Clan.