Little monk Shifang (played by Tony Leung) accompanies his master, Baiyun (played by Lau Ching-Wan), to escort the Golden Buddha to Mount Wutai. On the way, they encounter the rogue Taoist Yan Chixia (played by Jacky Cheung), who kills numerous bandits, and a conflict arises among the three. Shifang and his master spend the night at the ghost temple, Lanruo Temple. While the master goes out to scout, Shifang encounters the female ghost Xiao Zhuo (played by Joey Wong). Shifang resists her temptation, leading to a fight, and he subdues her with a spell, but still kindly lets her go. Shifang accidentally loses the Golden Buddha, and when he finds it again, it is broken into two pieces. The tree demon Old Granny seizes the opportunity to capture Baiyun. With Xiao Zhuo's help, Shifang escapes and seeks someone to repair the Buddha but is unfortunately scammed. Luckily, he meets the young Taoist Yan Yixia again and receives help from him. Xiao Zhuo's nemesis, Xiao Die (played by Li Ching), attempts to seduce the two but, in her anger and frustration, uncovers Xiao Zhuo and Shifang's plan, leading Old Granny to their hiding place. Shifang escapes again with Xiao Zhuo's help and rescues his master, but Xiao Zhuo is captured and tortured by Old Granny. Shifang and Yan Chixia dig up Xiao Zhuo's ashes to escape Lanruo Temple, but Old Granny has set a trap, putting everyone in great danger. At the last moment, Shifang transforms into the golden body of the Buddha to confront the tree demon...
