The heavens buzz with discontent as the gods in Heaven complain to the Jade Emperor about the mischief and malicious practical jokes played on them by Dragon Stephen Chow Lo Han. The divine commotion draws the attention of the Jade Emperor, who summons Dragon to answer for his offenses. In a twist of loyalty, Tiger Fighter Han Lo [Richard Ng Man-Tat] appears instead to defend his friend. Dragon steps forward to rebuke the various gods for their own harsh judgments on humanity, arguing that he could do a better job if given the chance. The atmosphere grows tense as the Jade Emperor contemplates punishment, and a surprising decision is made: Dragon and Tiger are banished to be reincarnated as animals. It is at this moment that the Bodhisattva Guan Yin [Anita Mui Yim-Fong] intervenes, offering a glimmer of mercy in the long celestial argument. The Jade Emperor presents a stark challenge: if Dragon can change the fates of three people destined for nine incarnations in the same roles—a beggar, a prostitute, and a villain—he will not be punished. To aid him, the Bodhisattva grants Dragon a magical fan. But before the challenge can even begin in earnest, Tiger steals the fan, depriving Dragon of a crucial tool as he is whisked away from Heaven.
Dragon is reborn into a family that visits a Buddhist temple to pray for a child, beginning a long odyssey of second chances. Tiger enlists the help of a heavenly ally named Unicorn to assist in obtaining the fan for Dragon, and in a strange twist of celestial comedy, Tiger is reincarnated but remains physically a baby in mind. Unicorn uses his magic to accelerate Tiger’s aging, creating a striking contrast: a youthful body with a child’s mind. Meanwhile, Dragon’s memories return in a sudden flash after a fateful encounter with the Nine Lives Whore Maggie Cheung in a bustling city. He also crosses paths with the beggar Chu Ta Chung Anthony Wong and the villain Yuan Ba Tian, each representing one of the three destined roles he must reform. The celestial window grows wide as clouds darken the moon and heavenly security loosens, allowing Tiger to pass the sacred fan to Dragon before he must return to Heaven.
With his memories restored, Dragon sets out to redeem those around him. He tries to impart dignity to the beggar Chu Ta Chung, coax the Nine Lives Whore away from her trade, and urge Yuan Ba Tian toward a better path. When Dragon spots Chu Ta Chung displaying a trace of dignity in front of the Nine Lives Whore, he arranges a date for the two of them, hoping to spark a transformation. The moment is shattered when Yuan Ba Tian launches a brutal attack on Dragon, murders Chu Ta Chung, and forces Dragon to witness the brutal violence inflicted on the Nine Lives Whore. In the wake of Chu Ta Chung’s death, he regains a sense of self and dignity, no longer merely defined by the beggar’s title.
Dragon retrieves a sacred relic, the Golden Skeleton, a remnant of a former life that holds great power. He journeys to the underworld to confront a demon and trades the skeleton for Chu Ta Chung’s soul. The demon consumes both the soul and the relic, returning Dragon to the mortal realm empty-handed. Back at the temple, Dragon finds that the local gods have begun to leave en masse; his deal with the demon has alienated them. He decides to pursue a path with the Nine Lives Whore that could free him from the cursed cycle, even offering marriage as a way to bridge the divide between divine and mortal. She agrees, but as Dragon begins to transform into a tree due to a heavenly prohibition on gods marrying mortals, she misreads the situation and believes he is playing a joke.
Yuan Ba Tian intensifies his cruelty, slaughtering the people in the brothel to purge the relic’s influence from Dragon. Dragon goes to the brothel to confront Yuan, hoping to restore his form and reclaim his power. He discovers that Yuan’s invincibility has been granted by the demon, who has given Yuan a stone heart. In a climactic moment, Dragon tears out Yuan’s heart to reveal the demon’s dark gift. The dying villain repents his past, begs for rebirth as an animal in his next life, and pleads to crush the stone heart.
Dragon receives one final chance to return to Heaven, but he chooses to stay and shield Earth from the demon’s destruction. He channels his power into the holy relic, turning it into golden paint to inscribe protective talismans around the temple. When the demon blows away the talismans and closes in, Dragon flees and seeks help from the temple Abbot. The Abbot’s playful response elicits laughter from the demon, and Dragon dives into the demon’s mouth, causing the demon to explode in a fiery demise.
The gods celebrate as it seems Dragon has lost the bet, but Guan Yin [Anita Mui Yim-Fong] interrupts the revelry to reveal how Dragon has truly altered the fates of the three people. Chu Ta Chung’s dignity has been restored, and he is reborn into a wealthy and loving family. The Nine Lives Whore has left the sex trade behind and opened a bean-curd restaurant, finding a life of honest work. Yuan Ba Tian renounces violence and is reborn as a pig, completing the trio’s transformations. In the end, Dragon is crowned victorious, receiving a tiara and a scepter in a lighthearted celestial pageant as all the gods cheer him on.
