When China was beset by internal and external troubles in the late 19th Century, the South and North schools of boxing tried to achieve a breakthrough in martial arts for self-defence against foreign oppression, and Chen Hsiang's unique Tsai-Li-Fu boxing especially spread far and wide. Chen Hsiang from a rich family in Sun Wui is by nature fond of fighting. He takes no interest in official titles but enjoys ganging up to invite trouble, thus landing himself in a tight spot. His mother has no recourse but to sned him to Canton to learn business from his Uncle. After arriving in Canton with his subordinate Secretary Sheng, Chen comes upon famous boxer Li Yu-shan. Not knowing his background, they try to drink him, trying to take possession of his room, but only to be outsmarted. Through the intermediary of Yu-shan, Chen attends Yi Kang's birthday party……

Chen Hsiang is captured by the Royal guards, but Yi Kang readily sets him free, knowing full well that nobody like him can ever be the killer. It happens that Tsai Fu, a pupil of a Shaolin high priest had a hairbreadth escape when the Shaolin Temple was burnt down and hundreds of pupils were killed, as ordered by Yi Kang. This triggered off his attempt on Yi Kang's life in retaliation. Chen Hsiang falls for Hsiao Hsuan, lavishing attentions on her, but Yi Chen also admires her. Jealous of his approach, Chen repeatedly challenges him to duels. Beaten, he even has Secretary Sheng burn to death a horse given by His Majesty. Mad with rage, Yi Chen orders to have Chen Hsiang arrested for conviction……

Chin Hsiang fails to trick Yu-shan arid appeals to his teacher Chen Yuan-hu. Yuan-hu knows well that Yu-shan is a renowned figure in the South school of boxing thus requests him to demonstrate to Chen Hsiang. Chen Hsiang is greatly convinced and implores Yu-shan to take him as pupil. In fact, Yu-shan has already recognized Chen Hsiang's potential in martial arts and intended to cultivate him. Chen Hsiang returns to Canton with Yu-shan, Chen Hsiang goes to visit Hsu Hsiao-hsuan but by chance discovers that she learns kung-fu from Tsai Fu thus realizes their relationship. Fearing that he will be threatened, Chen Hsiang promises to keep it a secret. Yu-shan suffers frorf, a stubborn illness arid after many doctors' failure to cure him, he seeks relief from opium and in a short time gets addicted to it. Later, Yu-shan learns that Tsai Fu knows a special skill to make patients sleep and wake up at a desired time……

The foreigners want to conquer China and introduces opium to the Chinese, thus many officers and the common people become addicts. Alarmed and upset by the situation, the Ching king sends Officer Lin Tse-hsu to launch anti-opium activities. When Chu Chiu-span kills himself, Yi Chen takes the chance to capture Mei-mei, thus Chen Hsiang fails to fetch her. Later Yu-shan goes in person to ask Yi ECang to let go Mei-mei. Yi Kang considers that Yu-shan is influential in the martial world, dares not offend him and releases Mei-mei right away. Chen Hsiang realizes Hsiao-hsuan acquires good kung-fu, challenges her and loses the fight. He thus lies to Yu-shan that he is defeated in a dream and asks for instructions to tackle the rival. Yu-shan is discerning and suspects the person that Chen Hsiang depicts is related to Tsai Fu. Yu-shan thus purposely makes use of Chen Hsiang and gets to know Tsai Fu……

Tsai Fu does massage for Yi Kang and takes the chance to assassinate him but Yi Chen comes to the rescue. Tsai is defeated and injured but is saved by Yu-shan who has already realized his intention. Yi Kang suspects Yu-shan to have saved Tsai Fu and sends Yi Chen to search Yu-shan's tea shop. Yu-shan tackles him tactfully. Yu-shan dresses Tsai Fu's wound arid finds that he is injured by the gun. Fails in using herbs to cure Tsai Fu, Yu-shan feels very anxious. Chen Hsi ang gets an idea and goes immediately to discuss with Hsiao-hsuan to save Tsai Fu. In order to save tier teacher, Hsiao-hsuan visits Yi Chen arid asks him to let her try using the gun. She then purposely injures herself and obtains western drugs from Yi Chen to save Tsai Fu. Secretary Sheng becomes fond of Mei-mei and tries hard to please her. Mei -mei is not moved but feels annoyed. Secretary Sheng uses tricks while betting but is discovered……