The Ninja Empire has been run by an evil master and one member decides to leave the empire. The ex-Ninja wants a Hong Kong detective to track down the new leader and end his reign of terror. "Cut-and-paste" transformation of Taiwanese movie "To catch a thief" (1984; directed by Gam Ming) with new Hong Kong footage.

The film was created by re-dubbing footage filmed for the 1986 Taiwanese kung fu film Ren zhe da (known in English as Ninja: The Final Duel). Ren zhe da producer Robert Tai had reportedly filmed 10 hours of footage for the film that was cut to 90 minutes for release. Much of the footage that was not included in the release of Ren zhe da is included in Shaolin Dolemite as well as original footage of Moore observing the story of the film and making obscenity-laced comments. Other new footage includes a segment portraying Moore's long time friend Jimmy Lynch as a Drunken Master named Sam the Spliff.

Wang Chung plays the standard level-headed cop in charge of a rag-tag bunch of misfits and stereotypes (the coward, the playboy, etc.) who are after a drug runner. After their informant is killed, the team turns to a former Triad member (Danny Lee) to infiltrate the gang and bring the big boss down.

Cindy is an American FBI agent, who is currently in Hong Kong, seeking arch-criminal Kent Tong. In order to bring down Tong and his criminal organization, she teams up with local HK cops, David and Johnny.

The second movie Robert Tai made out of his original Ninja: The Final Duel footage. This one was used largely as the basis for Shaolin Dynamite.

Master martial artist Masahiro Kai is a shadow of the champion fighter and trainer he once was. After his protégé was slain in a no-holds-barred, underground fight by the incomparable Chang Lee, Kai slips into a numbing alcohol-induced stupor to try to forget the past.

A team of Chinese cops based in Greece known as "The Cyprus Tigers" and a crooked businessman, along with his Japanese henchmen, are after a set of counterfeit money printing plates.