Wang Cong'er, leader of the White Lotus sect, narrowly escapes after her base is surrounded by the Qing army. A reward is posted for her capture throughout the city. Wang and the White Lotus sect realize there is a traitor among them.

Dong Erbo, born into a scholarly family, resolves grievances through his benevolence and righteousness. The film establishes his chivalrous image through scenes like Dong Erbo caring for the daughter of the murderer of his father, writing a certificate of indebtedness in blood to a robber, and freeing a young man who accidentally killed a relative. He takes in and protects an orphan swordsman, ultimately dying during a crackdown by government troops. The film uses a rugged visual language to depict the desolate geography of the West, and through the portrayal of these chivalrous men who relentlessly avenge their enemies, it conveys the philosophy that "the sword cannot subdue anyone."