After the person whom the Moon Palace loved, the Lotus Flower, married the governor, he became despondent, indulging in a life of drunken revelry to numb his wounded heart. By the lake on the outskirts of the village, there were two fish spirits, Bai Qiulian and Bai Qiuhong, who often transformed into human forms to frolic in the human world, absorbing people's souls, but they were frequently interrupted by a Daoist priest, Zhenjun, who was determined to subdue the demons. One day, while Bai Qiulian was searching for prey in the water, she was suddenly drawn by the sound of a passionate flute from the shore. Following the sound, she swam to the bank and discovered the drunken Moon Palace, instantly falling in love. Bai Qiulian learned that the Moon Palace often frequented the Flower Tower by Taihu Lake, so she transformed into a woman from the Flower Tower to attract his attention. Mistaken in his drunken state, the Moon Palace thought that Bai Qiulian was his long-yearned Lotus Flower and fell for her. Realizing that the Moon Palace was troubled by love, Bai Qiulian felt even more sympathy for him. Zhenjun aimed to learn to control water magic to subdue the fish spirits, and used his magic to turn a pile of stones into silver to give to the Moon Palace, who had taught him literacy. However, the Moon Palace took the silver to the Flower Tower, revealing his true colors, and the silver turned back into stones. He was pushed into the lake by the matron, losing the flute, which Bai Qiulian fortuitously picked up. Bai Qiuhong noticed Bai Qiulian's feelings for the Moon Palace and advised her not to be swayed by love, lest she suffer...