The young monk Shifang (played by Tony Leung) escorts the Golden Buddha to Mount Wutai with his master Baiyun (played by Liu Xun). On the way, he encounters the rogue Taoist Yan Chixia (played by Jacky Cheung) who kills countless robbers, and the three of them become enemies. Shifang and his master stay overnight at the ghost temple Lanruo Temple. When his master goes out to investigate, Shifang encounters the female ghost Xiaozhuo (played by Joey Wong). Shifang is not tempted by her, and the two fight. Shifang chants a spell to subdue her, but still kindly lets her go. Shifang accidentally loses the Golden Buddha, and when he finds it, it is broken into two pieces. The tree demon grandma takes the opportunity to attack, and Baiyun is captured alive. Shifang escapes with the help of Xiaozhuo, and goes out to ask someone to repair the Golden Buddha, but unfortunately he is deceived. Fortunately, he meets the young Taoist Yan Yixia again and gets her help. Xiaozhuo's mortal enemy Xiaodie (played by Lizhi) tries to seduce the two but fails. In anger, he sees through Xiaozhuo and Shifang's plan and leads the grandma to the hiding place of the three. Shifang escapes with Xiaozhuo's help again and saves his master, but Xiaozhuo is caught and tortured by the grandmother. Shifang and Yan Chixia dig out Xiaozhuo's ashes and escape from Lanruo Temple, but the grandmother has set a trap and everyone is in danger. At the last moment, Shifang transforms into the golden body of Buddha to deal with the tree monster...