After the events of The One-Armed Swordsman (1967), a retired Fang Gang is drawn back into the jianghu to protect various young apprentices whose swordsmanship schools have been terrorized by 8 evil swordsmen seeking to rule the jianghu.
The Qing emperor releases all detained Shaolin disciples, but the vindictive White Lotus clan decides to exterminate all the disciples. One martial artist survives the onslaught, and constantly trains while in hiding for revenge.
After facing brutal humiliation in the ring, a young karateka travels to China in order to study the ancient art of Shaolin Kung Fu, becoming the first American Shaolin.