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Yu Lap-chung has been executed for the murders of martial alliance members when the black-clad assailant to blame is still roaming free. Apprehended by the murder threats to the helmsman of Emei and Xueshan, Golden-clad Ambassador of the alliance solicits help from the security escort master Wai To, Yu in disguise spared from execution by his master who had a rapist stand in his place. The fake scholar ingratiates himself with Ai Ching-yee, daughter of the Mulberry Pillar Fortress helmsman Ai Pak-chuen and exposes the father's conspiracy with his sworn brother to rule the martial world by dispatching Ching-yee's senior disciple Sze-hung Ying to commit atrocities against the martial alliance. Yu cajoles Ching-yee into assisting in Sze-hung's capture and with the culprit handed over to the alliance, the young lovers wander away.

Cheung Yan-Lai, framed by his elder brother Cheung Yan-Tsuen, is sent to jail. He manages to escape and plans to take revenge along with a sorcerer, who uses orangutan blood to turn the Yellow Hair Monster into a lethal weapon.