The surviving No. 6 returns to the Capital to lay the case before the liege. Pan Hung is then captured, but aided by Lady Pan, he frames the Yangs for conspiracy. Luckily, an honest judge Kou Chun forces Pan Hung into confession and orders him to be exiled. He is subsequently killed by No. 6.

No. 6 is ordered to suppress Liao's rebellion. Meanwhile, Tien-yu and Tien-chu return, to Heaven to bring Lu Tung-pin down to earth as counsellor to help Liao against Sung. They lay a Heavenly Gate array to trap No. 6.

On learning of this, Lady Yang personally leads the Army to come to his rescue. Guided by Taoist Han Chung-li, she orders No. 8 to steal a golden sword from Liao's palace and No. 5's wife to seek help from, No. 5 in the Temple.