London., 1920. In the fortress, the Vampires are raided by a team of priests led by YAU LAP-YAT. Vampire Nicotine is injured, but survives. He is shipped to China with the help of servant WONG YAU-YEN. In Sam Kong County of China, two power-minded landlords CHEUNG YUK-GAU and LAU TAI-PAU are manoeuvring over the post as the Chief of the County. CHEUNG outwits LAU and becomes elected. A Chinese sorcerer NG WAI leads a team of living deads and passes by the county. He is made fun of by mischievous ghost CHUI SUET-YIM. NG WAI gets the help of CHEUNG YAU-KAY to help SUET-YIM to get reincarnated. The ceremony is nearly done when Cheung interferes. Thinking that YAU-KAY and NG WAI are grave thieves, he has both arrested and imprisoned. SUET-YIM becomes a living dead. She picks CHEUNG's wife to be the sacrifice for her reincarnation. WONG arrives with a big black box inside which lies Count Nicotine……

SUET-YIM tempts CHEUNG's wife to commit suicide. CHEUNG comes home in time to stop her. Dawn comes and SUET-YIM slips away. CHEUNG releases WAI and KAY, begging them to handle SUET-YIM. WAI has to lead the living dead. to their village for burial. He reminds KAY to handle SUET-YIM, the ghost. LAU's people are robbed on their way transporting the black box. KAY witnesses the robbery and recognizes the robbers to be CHEUNG's assistants. KAY is injured by CHEUNG who wants to kill him. KAY is rescued by LAU. LAU learns of the trick CHEUNG has played on him, and decides for a revenge. His plan is to kidnap CHEUNG's daughter SIU-NING who studies in the town. Count Nicotine escapes from the box and starts sucking blood everywhere.

CHEUNG’s daughter SIU-KING is taken hostage in LAU's house. She frees herself and gets a hold of LAU's son HAN-LEUNG as hostage. She would only free him when her father send people to take her home. LAU meets CHEUNG, but lies to him that SIU-NING is held hostage. He demands for the black box in exchange of SIU-NING. CHEUNG panics at the news for he has no idea what is inside the box. SIU-NING is having a good time bullying and preying on HAN-LEUNG. Count Nicotine is caught by villagers for stealing chicken. They take out his fangs. He swears to revenge some day. CHEUNG decides to raid LAU's house to rescue SIU-NING. Both camps start a fight. CHEUNG loses the fight. YAU-YEN appears in time as a living dead and rescue CHEUNG’s.

YAU-YEN saves CHEUNG and leads him to see Count Nicotine. Nicotine suggests a deal with CHEUNG. CHEUNG would help him establish his influence while he would help CHEUNG handle LAU. HAN-LEUNG becomes sick. SIU-NING is touched by HAN-LEUNG's good nature and softens her attitude towards him. She nurses him and they gradually develops affection for each other. Nicotine attempts to rescue SIU-NING but fails. LAU decides to cut off her ear as a warning to CEEUNG.. HAN-LEUNG strongly objects. LAU resolves to cut off CHEUNG's assistant, AH-LUNG's ear instead. Nicotine goes to the Dentist shop to get a pair of false fangs. HAN-LEUNG decides to release SIU-NING secretly. Nicotine sneaks into LAU's house. Everybody has eaten garlic except LAU's first wife, SHUN. He sucks her blood. KAY and CHING-CHING follows her and discovers that she is meeting Nicotine.

KAY casts a spell to catch Nicotine. LAU's wife helps Nicotine escape.KAY takes her home and tries to heal her of her disease. CHING-CHING sucks out the vampire poison from her and she is cured. She is greatly fond of CHING-CHING and wants HAN-LEUNG to marry her. HAN-LEUNG is unwilling to, because he only loves SIU-NING. SUET-YIM has entered into LAU-s house. She is touched by HAN-LEUNG's deep love for SIU-NING and decides to help him deliver his love letter to SIU-NING. CHEUNG discovers that SIU-NING is meeting HAN-LEUNG secretly. He begs Nicotine to handle HAN-LEUNG. Nicotine visits the LAUs and starts an affair with LAU's second wife WAN-KAM. WAN-KAM agrees to act as his spy for getting HAN-LEUNG. SUET-YIM helps HAN-LEUNG evade Nicotine's attack. KAY summons his magic to force Nicotine to appear. WAN-KAM secretly upset the procure so that his magic does not work.