In the Taebong dynasty towards end of King Gungye's reign in the deep ravines, a thousand year old pair of foxes lived. They were father and daughter practicing asceticism to become humans. Lee Mu-gi, a snake skilled at the martial arts, changes into a human to capture Hyo-nyo. He rescues Hyo-nyo from Ok-to dragon which came to earth to find the learned priest Gwang Seon-sa. Hwang Jeong and old man Hwang (the foxes) take a liking to Ok-to and decide to help him fight the thieves and they defeat Lee Mu-gi. Hwang Jeong falls for Ok-to. But knowing she can't love a human, Hwang Jeong gives her life to save Ok-to.

Based on the reincarnation theory of Buddhism, Heo Sun rescued a little white snake. Afterwards, a thousand-year-old white snake comes out to watch the May Festival when he discovers Heo Sun living in poverty. In order to thank him, the white snake takes the form of the maiden, Baek-ryang, and marries him, making a wealthy life for them. One day, the spiritual Buddhist priest Mo-san tells Heo Sun that Baek-ryang is a ghost. He tells him how to get rid of the woman but when he finds out that Baek-ryang is pregnant, he decides to wait a year. On the baby's 100th day celebration, Baek-ryang is buried in the gourd that Mo-san has made and she is unable to do any more magic.

Due to a drought that has occurred only once in a hundred years, the people of the Gaeryong and Gangho regions are plunged into misery. Upon this, Great Master Baekseong urges Geum-bung to find the Night-Glowing Pearl. Geum-bung meets Jung-yong, who was born as a dragon and was then transformed into a human, and sets off for the Gaeryong region to help him obtain the Night-Glowing Pearl and save the people. The film is a South Korean remake of a Taiwanese film titled Sea Gods and Ghosts, which this film also pilfers footage from.