Upon becoming Prince Regent, the bellicose Lord Biu of Wu sends commander-general Si Ching-wan to rage wars between the Zhao and Chen Kingdoms. A small state that is long on literary excellence but short on military might, Chen is defenceless against the invading forces. The compassionate general answers the pleading of the Chen princess, Fung-ming, to sign a treaty of peace. In his speech to the lord, Deputy General Lau Mo-yeung accuses Si of treason so as to lay claim to Chen. The lord dispatches the valiant fighter Lui Chen-sing to Chen on an assassination mission, but the assassin is vanquished. Si prevails on Lui of his patriotism. Lord Biu fights Chen. In a dire attempt to redeem Chen, Si surrenders to the Wu camp. Lui pretends to have blinded Si to extricate him. The duo ally with a band of chivalrous fighters to overturn the corrupt regime. Dispossessed of his throne, Biu commits suicide. Si returns to his land to serve as an aide to the young king and marry Fung-ming.

Fok Tats scheme to raid a convoy of government reserve is intercepted by 'Ghost Knight'. Chau Ping, an accomplice of a corrupt official, declares wars on Fok whom he believes has ties with the mysterious raider. A meeting was convened by Ghost Knight to settle the dispute. Tat's son Sze-chuen learnt that his maid Ma Yuk-lan is the daughter of a general of the ousted Ming court who has donned the mask of a knight-errant to protect the son of the Ming minister Sze Ho-fat, Sze-chuen himself. Back in Deadly Valley, an impostor of Ghost Knight was caught. Slashing at the father, Sze-chuen is disheartened to learn that the faker, Ma's mother, has been transferred to the enemy camp in a feigned surrender orchestrated by Sze while an uprising is gathering momentum funded with money robbed from the corrupt official. Ma teams up with the father and son to storm the Chau Fortress and rescue Ma's mother. The couple champions the restoration of the old empire with Sze's seal.