WU tries to explain his situation to KO who, determined to break their connection, rejects to meet him. Pleased, ABBESS FU MUI decides to appoint KO the clan leader before she departs for the Taoist Meeting.

On her way to the meeting, FU MUI comes across the BAT PALACE's fighters and the FOURTH LORD disputing over their transaction. FU MUI intends to bring the EMPEROR away but finds him missing.

FU MUI seeks help from YUEN but finds him indifferent. Believing her that he is the EMPEROR's son, YUEN gathers the clan leaders to discuss how they should deal with the BAT PALACE.

Misunderstanding that FU MUI has taken the EMPEROR away, the FOURTH LORD intrudes WAH SHAN CLAN. Failing to find the EMPEROR, he burns the WAH SHAN TEMPLE and kidnaps KO and WU.

To uproot the influence of the FOURTH LORD, YING and FEI intend to assassinate him. Defeated, they fall down a precipice.