Chen Hsiang is captured by the Royal guards, but Yi Kang readily sets him free, knowing full well that nobody like him can ever be the killer.

It happens that Tsai Fu, a pupil of a Shaolin high priest had a hairbreadth escape when the Shaolin Temple was burnt down and hundreds of pupils were killed, as ordered by Yi Kang. This triggered off his attempt on Yi Kang's life in retaliation.

Chen Hsiang falls for Hsiao Hsuan, lavishing attentions on her, but Yi Chen also admires her. Jealous of his approach, Chen repeatedly challenges him to duels. Beaten, he even has Secretary Sheng burn to death a horse given by His Majesty. Mad with rage, Yi Chen orders to have Chen Hsiang arrested for conviction……