A young and unworldly kung fu student is now the student of an evil teacher, the villainous Manchu Lord Tsoi. The young impressionable man soon learns that his choice has made him a villain to his own family and people.

Hsia Hu sneakily graduates from the Shaolin Monastery without completing his required training. During his first encounters with people outside the monastery, Hsia Hu realizes that people are mistaking him for his twin brother, Hsiao Fu, who happens to be a criminal and an expert in the art of Kung-Fu. He is now treated with respect as well as fear and is taking advantage of his mistaken identity. His fun comes to a halt when he is confronted by Yi Lan, a former accomplice turned enemy.

As China and Russia's governments are talking peace, traitorous agents on both sides seek war. Enter John Liu as a special agent sent to identify who the Russian traitor is, and who his contact is within the walls of the Forbidden City.