Wan Fei Yeung brings Siu Chi and Luk Dan to Wu Dang to learn martial arts. There's also an important battle on the mountain. During the battle, the leader of Wu Dang loses and is killed, but they found out later he was poisoned before the battle. The emperor got tricked into killing good officials, and wants to kill the bad official. The other students in Wu Dang don't like Luk Dan and always bully him, so Siu Chi teaches him whatever martial arts he knows. Then they go to steal a martial arts manual so he can learn some on his own.