Set 100 years after the events of A Chinese Ghost Story, Buddhist Bai Yun (Shun Lau) and his disciple Fong (Tony Chiu Wai Leung) journey through a small town to transport a golden idol of Buddha. However, local thieves thwart their journey, sending them to take shelter at the ghostly Orchid Temple. There, Fong encounters Lotus (Joey Wang), a female ghost at the evil bidding of the awakened Tree Devil (Siu-Ming Lau). As Lotus falls in love with Fong, her evil sister Butterfly (Nina Li Chi) threatens to expose them to the Tree Devil, whose reign of terror is vowed to be ended by Bai Yun.
—Oliver Chu