Master Liu and Master Law are rival masters of Shaolin style kung fu, and Wudang style sword fighting, running schools in the same city. Their top students, Chao Fung-wu, and Hung Jun-kit, are actually close friends. After observing the two students fighting at a brothel, the Lord determines that the two styles are dangerous, and he must learn both.
A band of counterfeiters wants to make Hong Kong their new territory. The disgraced leader of the Special Squad will have to team-up with a group of Hong Kong police officers in an attempt to stop the dirty business of crime lord Han Tin Lung, but Han's problem is not only the interference of the Police force, but his Japanese ally Kimura is not happy with his 'cut' in the counterfeit deal and will try to put Donna (a relative of Han) on his side to make Han's business his own property. Both policemen and criminals are highly trained Martial Arts fighters and they will have the chance to prove who has the best Kung Fu techniques.
A young peasant boy who is bullied by local noblemen seeks to learn drunken boxing from the head of a local martial arts school. When the boy beats up his previous tormentors, the nobles patriarch challenges the boys teacher, the drunken master, who defeats the lot of them. Embarrased, the nobles retain two hired snake style killers. They kill everyone except the peasant boy.
