New characters were introduced in Mr. Vampire 1992, and some actors from the first film, such as Billy Lau, were recast in new roles.

The film is based on the concept of the souls of aborted fetuses who reside in statues awaiting reincarnation.

The other storyline involves a General (who is married to the aforementioned Mai) who was infected by the vampire virus from his dead father and seeks Kau's help in healing him.

After failing in the task, Kau's disciples are sent to hunt out a group of vampires to obtain their fangs.

Both storylines converge at the finale with the demon child taking full possession of Mei and the group of vampires seeking revenge in a final all-out battle at the General's residence.