In the Southern Song Dynasty, there is turmoil both externally in the country while infighting and killing among various sects are common in the martial art world. The family of KOWK CHING (LEUNG KA YAN) and WONG YUNG (AU YEUNG PUI SAN) lead a tranquil and peaceful life on Peach Blossom Island. Fate has led CHING to meet YEUNG GOR (ANDY LAU KAK WAH), son of his old friend YEUNG HONG, when he returns to the mainland to look for YUNG's father WONG YEUK SHI. CHING sympathizes with GOR since he is an orphan, and brings him back to the Island.