Fatal Needles vs. Fatal Fists

A group of criminals tries to bribe the Bandit Catchers into turning a blind eye to their schemes. The officers refuse the bribe, and a violent confrontation ensues. In the chaos, Chow Lung moves to shield Meng Hu from a spear, taking a fatal wound that leads to his death.

Meng Hu blames himself for Chow Lung's death and withdraws from crime fighting. He sinks into despair and becomes a heavy drinker, leaving the force behind. This loss triggers his long march into depression.

To pay off his debts after retirement, Meng Hu is taken in by a brothel madam who offers him employment. He adopts the name Chen Chai to hide his past and begins a new life at the establishment. This marks the start of his unlikely transformation.

When a patron assaults a courtesan, Chen Chai steps in despite his reluctance to fight and is wounded. He is left on the doorstep of a martial arts school where the magistrate's daughter and the school's servant find him and begin nursing him back to health.

Chen Chai is cared for by the magistrate's daughter and the school servant, who help him recover. He offers to work at the school for free to repay his debt. This act earns him a fragile place within the magistrate's orbit.

Chung Tung, an acupuncture master, and his gang try to bribe the magistrate to permit opium smugglers in the city. The magistrate refuses the bribe and attempts to arrest Chung Tung, foiling his plan.

The students at the school grow frustrated with Chen Chai, believing him a coward—until his friend is beaten and stabbed by Chung Tung's henchmen. Chen Chai finally overcomes his fear and defends his friend, winning the magistrate's respect and the students' admiration.

Chung Tung has golden needles inserted into the magistrate to kill him in three days, or if removed by anyone other than an acupuncture specialist. This plan is designed to force Chen Chai and the magistrate into compliance and let Chung Tung control events.

Chen Chai develops a plan to save the magistrate and halt the opium shipments, coordinating with allies at the school and in the city. The plan aims to thwart Chung Tung's grip and break the smuggling network.

Believing everyone will sacrifice to save him, the magistrate removes the needles himself, triggering his immediate death. With the obstacle removed, Chen Chai can pursue the fight against Chung Tung openly.

With the magistrate dead, Chen Chai and the magistrate's offspring devise a new strategy to defeat the drug smugglers and avenge the magistrate. They consolidate their resources to bring Chung Tung to justice.

Before the final showdown, it is revealed that Chung Tung is connected to the death of Meng Hu's former partner Chow Lung, adding a personal motive to the coming clash. The revelation deepens the vendetta and raises the stakes for Chen Chai.

Chen Chai and his allies confront Chung Tung and the opium smugglers in a final confrontation. The battle seeks to end the criminal operation and honor the magistrate and Chow Lung with their victory.