In 16th century, during the Ming dynasty era, every ten years the greatest swordsman from Japan faces the greatest swordsman from China in a duel to the death for their nation's honor. As a duel approaches, Chinese champion Ching Wan and Japanese champion Hashimoto uncover a plot to rig the fight.

Jackie is a young woman determined to reverse her bad luck. She consults the God of Gold, who advises her to "nurse a ghost". She is given a small figure to worship, and the worship includes dripping three drops of her own blood every three days. At first, all goes well and she falls in love. But this new happiness causes Jackie to forget to worship the figure, and the spirit doesn't like it. With good intentions, her new boyfriend, Raymond, discovers Jackie's strange predicament and attempts an exorcism which goes horribly wrong. The spirit takes over Raymond, who starts doing nasty things.

Shaolin practitioners and brothers Wu and Hung kill the merciless Pai Mei. However, Pai Mei's even more merciless brother White Lotus takes revenge; killing most of the Shaolin disciples, including Wu and Hung's girlfriend, leaving only Wu's pregnant wife and Hung as the only remaining practitioners of Shaolin left to avenge the deaths. But Hung's kung-fu will not be powerful enough so he must learn feminine kung-fu techniques to help him try and defeat White Lotus.