Powerful Manchu officials in Guangdong are achieving hegemony over the native Han Chinese population and threaten to shut the school down.
In order to save her family's honor and keep the school open, Sai-Yuk's mother makes a bargain with the Shaolin monk San Te for her incorrigible son to be given refuge in the temple's 36th Chamber, which is a training hall for non-monks.
Sai-Yuk, in his innocence, falls into the trap and inadvertently starts sharing Shaolin secrets with the Manchu on a regular basis.
Sai-Yuk starts visiting the hostile town daily, where he is repeatedly honored to make him believe that the Manchu are actually very nice and gentle.
The Manchu leader had a devious motive behind this, as he had planned to poison all the pupils to remove the threat of the Shaolin temple's monks once and for all.