Teacher Huang San extends to his pupils the high principles of patriotism, thus arousing the hatred of the occupying Japanese. Huang is forced to flee and to escape from the Japanese clutches. One night, he helps a robber escape from a pursuing Japanese officer by firing his gun and thus unintentionally kills the Japanese. Huang San follows to his hideout and from then on, Huang San joins the bandits. Huang San attempts to rob a house but discovers that the occupant is none other than his student Wang Zhongkang who is involved with the guerrillas. Huang San decides to help Zhongkang raid the military arsenal of the enemy. However, as Huang gradually gains the trust of their chief, some jealous associates within the bandit group informs on him. Huang and Zhongkang carry out their raid amid a fierce confrontation, Zhongkang successfully implements his mission but Huang is killed in the battle.

Showing off his love of visual aesthetics as a painter, director Dan Duyu combines elegance, exoticism and oddity into a grand big-budget package with New Arabian Nights. Dan's vision is definitely not bound by the source material, but his magical and music-filled version of the orient turns out to be not so different from how Western storytellers would imagine it.