The film is based on a short story in Strange Stories from a Chinese Studio, a collection of legendary and supernatural tales written by Pu Song-Ling and published in 1740. In the story, a young scholar named GU lives near a rundown mansion rumored to be haunted. One day, he befriends YANG, a mysterious beauty hiding inside the mansion. After a night of passion with GU, YANG reveals that her father, an honorable official, was executed by the nefarious but powerful Eunuch WEI. Now, she is also hounded by WEI’s agents, who attempt to eradicate all trace of her family. GU then finds himself caught up in her struggle to survive. When the agents attack the mansion, he devises brilliant tricks to crush the siege.
Though in love with GU, YANG leaves him after the battle to become a Buddhist nun, trying to leave her past behind. However, after realizing that GU is in danger, YANG and her mentor set out to protect him. The army commander sent by Eunuch WEI confronts the two, and a battle of carnage between good and evil ensues…