Grandmaster Chen, the last heir of the Wing Chun martial arts tradition, journeys to Tianjin hoping to establish a martial arts school. After triumphing over all of Grandmaster Zheng's disciples, Chen is presented with a tempting offer by Zheng to collaborate on a school, which Chen turns down firmly. Subsequently, Zheng issues a threat: Chen must train a disciple capable of defeating the eight schools of Tianjin; upon their victory, he may open his school. However, Zheng harbors ulterior motives, intending to undermine Chen's disciple after their victories to boost his own image.
In the midst of this turmoil, Chen contemplates marrying a local woman and proposes to a waitress named Zhao. However, their peace is shattered when they are attacked by thugs, whom Chen defeats effortlessly. This display of power attracts the notice of Geng, a brave rickshaw-puller, who later seeks to train under Chen. Recognizing Geng's potential, Chen welcomes him into his training regime.
As Geng rapidly excels in Wing Chun, they achieve several victories ahead of the anticipated schedule. Yet, their success stirs the anger of the local crime lord, Madame Zou, who retaliates against Chen, compelling him to keep a distance from Geng. As tensions rise, Zhao realizes Chen's plan appears to betray Geng, leading to her expulsion from his home.
Meanwhile, Zheng is confronted by a former pupil, Lin, now a military officer, who persuades Zheng to engage in a public spar. Zheng wins decisively, but Lin, working covertly for Madame Zou, ambushes and severely injures him. Following this betrayal, Zheng opts to leave Tianjin for Brazil. When Chen suggests fleeing with Geng due to the looming threat from Madame Zou, she mercilessly prevents their escape, allowing Chen to establish his school for a limited time before they must depart. In a cruel twist, she sends assassins to eliminate Geng.
After they fail, Lin is dispatched to execute Geng, who, after sustaining a stab wound, chooses to walk back to town instead of seeking medical help, ultimately succumbing to his injuries. On the anticipated day of Chen's school opening, he visits a tea-girl who reveals Geng's tragic fate, showing him a blood-stained book belonging to Geng. Stricken with grief, Chen's sentiments affect his composure, leading him to attack Lin during the ceremony, culminating in a brutal confrontation with Lin and Madame Zou's henchmen.
In a desperate bid for survival, Chen attempts to escape captivity, triggering a massive pursuit from all nineteen martial arts schools in Tianjin. Cornered in a narrow alley, he defiantly battles and conquers the masters, choosing mercy by sparing Madame Zou's life. Thinking that Zhao has already fled to Guangdong, Chen boards a train, unaware that Zhao is still in Tianjin, where she is ultimately captured by Madame Zou. Still, Madame Zou chooses to spare Zhao, orchestrating spies to monitor her movements, cleverly setting the stage to manipulate Chen into silence about the events that transpired.
