While transporting funds for independence movement, Lee Han-saeng is shot in the legs by the Japanese military police. He recovers from his wounds with the help of Jang Geo-chil, an independence fighter, and his daughter, Wan-ah. When the Japanese police investigate Jang's house, Han-saeng and Jang take refuge in the home of Wan-ah's uncle. But he sells them out, blinded by his greed for the reward on their heads. They run and hide in kisaeng Ae-hi's home. Ae-hi and her sister Yu-ha desire revenge on the Japanese police who killed their father. But they are killed when Wan-ah's uncle turns them to the Japanese police while Han-saeng is away. When Jang and his wife are killed, Han-saeng takes revenge on the Japanese police.

The story revolves around three nasty villains' quest to retrieve the Seven Star Armor which will enable them to retrieve the sacred sword from a Taoist monastery.

A one-armed martial arts master is being stalked by an Imperial assassin, the master of two fighters killed in the previous film. When the One-Armed Boxer is invited to attend a martial arts tournament, his efforts to lay low are unsuccessful, and the assassin soon tracks him down with the help of his three subordinates: a Thai boxer, a yoga master, and a kobojutsu user.