A down-and-out scholar Atsai is so disillusioned with life that he tries to commit suicide in a dilapidated temple. At that very moment, a female ghost appears on the scene. As she is on the verge of killing him, a male ghost also shows up. The male ghost saves him, but Atsai gives him a scolding for his trouble. Then they start sharing their woes, and end up drowning their sorrow in wine. Unfortunately, the wine is drugged and Atsai dies. Forty years later, a Taoist priest meets the ghost of Atsai, who asks for his help because he is being controlled by an old demon and cannot be reborn.

The story begins with a feud between two families in the early days of the Republic of China. One family side’s with the Japanese and the other is totally wiped out. Enter our hero who resolves to wreak revenge on the murderous traitors — its furious kung fu fighting all the way!