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 investigate, Shifang encounters the female ghost Xiao Zhuo (played by Joey Wong). Shifang resists her temptation, and the two engage in a fight. Shifang recites a spell to subdue her but still kindly lets her go. Shifang accidentally loses the Golden Buddha, and when he finds it again, it has been broken into two pieces. The tree demon Granny takes advantage of this opportunity and captures Baiyun. With Xiao Zhuo's help, Shifang escapes and seeks help to repair the Golden Buddha, but unfortunately gets cheated. Fortunately, he meets the young Taoist Yan Yixia again, who assists him. Xiao Zhuo's arch-enemy Xiao Die (played by Li Chuchu) tries to seduce the two and, in her anger, discovers Xiao Zhuo and Shifang's plan, leading Granny to their hiding place. With Xiao Zhuo's help, Shifang escapes again and rescues his master, but Xiao Zhuo is captured and tormented by Granny. Shifang and Yan Chixia dig up Xiao Zhuo's ashes and escape from Lanruo Temple, but Granny has already set a trap, putting everyone in danger. In the final moment, Shifang transforms into the golden body of the Buddha to confront the tree demon...
