A brother and sister escape from Japanese-occupied Shanghai to Japanese-occupied Taiwan, to stay with their grandfather who runs a Kung-Fu school there. However, the master of a Japanese Kung- Fu school in Taiwan has plans to bringing all other schools on the island under his domination, and part of his plan involves the murder of the grandfather.

After the death of his master, martial arts student Tong Huo-wan travels with his adoptive family to seek redress from the man responsible but finds himself torn between righteousness and filial piety after becoming entangled in a feud between a local clan and gangsters.

Chan is asked by a young, wealthy lady to take her sick brother to a particular doctor in order to be cured. To reach this doctor, Chan and a handful of travelling companions must pass through bandit-infested wild country. They meet and kung-fu-fight several gangs of thugs along the way.

After a couple purchases an antique vase at a market, the woman is possessed and killed by a demonic creature. Twelve years later, the demon returns to possess the woman's nephew and wreak more havoc.