In the film, a wandering exorcist and two ghosts who serve as his spirit companions face an evil witch doctor and her gang of bandits.

One dark night, Uncle Ming attempts to exorcise angry spirits in a haunted house but is unsuccessful and he narrowly escapes.

Devil Lady casts a spell on Big Pao, making him see people dressed in Taoist robes as monster birds, and sends him to attack the town.

During the chaos, Devil Lady breaks into the town prison to free two of her bandits who were captured earlier by the townspeople, but falls into a trap instead.

Just then, the coin sword binding Devil Lady shatters and the sorceress' spirit is set free to take revenge.