The Emperor dispatches his favourite, wicked Kao Chiu, to the sacred mountain to exorcise the evil behind the terrible plague that grips China. Kao Chiu discovers an ancient temple, its doors sealed shut on the orders of a previous emperor. Within is a pit believed to contain the souls of nine dozen rebellious knights. The souls are scattered over China, now reborn as heroes who will take a stand against the corruption that has gripped the empire. One such hero might be Lin Chung, an honourable officer in the imperial army. However, Kao Chiu hatches a plot to have Lin Chung discharged from the army in disgrace.

Lin Chung accepts his punishment, continuing his journey to Tsang Chou jail. On the way he encounters a band of rebel outlaws who try to persuade him to join them. Lin Chung refuses. fearing for the safety of his wife, Hsiao Lan, still in the capital city - and under the lustful gaze of Kao Chiu. Once imprisoned, Lin Chung earns the respect of head guard Lu Ta. However, Kao Chiu still plots against Lin Chung from a distance - and his evil desire for Hsiao Lan grows all the time.

Yang Chih - known as 'Blue Face' - is one of the few honourable men in government. Kao Chiu has banished him to a distant province - with orders to capture and kill Lin Chung. Lin Chung, searching for his wife Hsiao Lan, is offered refuge by Wang Lun, leader of the rebel warriors of Liang Shan Po. However, Yang Chih has captured Lin Chung's wife: Lin Chung must face Yang Chih in a duel that will decide the fate of them all.

With Lin Chung now at Liang Shan Po, the union of the rebel knights has begun. Hearing the news, 'Tiger Hunter' Wu Sung heads for the water margins. Shih Chin - 'Tattooed Dragon' - has already joined the mountain bandits led by Chu Wu, but in pursuit of his true love he is captured and faces certain death. Now Lin Chung must unite with Wu Sung and Chu Wu to execute the daring rescue of Shih Chin.

Evil Kao Chiu, not content with being Viceroy and head of the army, plots with his brother-in-law to become Prime Minister as well. Yang Chih -'Blue Face' - is given a chance to redeem himself after his earlier failure: he must guard the tax collections destined for Kao Chiu. The good rebels of Liang Shan Po soon learn that a huge fortune of jade and gold is on the move - as does the respected nobleman Chao Kai. With Chao Kai ride Hu San-Niang and Lu Ta, the former head guard of Tsang Chou jail. Lin Chung is on a collision course with Chao Kai - and Yang Chih.