''Goodbye, Dragon Inn'' is set in the approximately 90 minutes of the last feature at an old Taipei cinema that is closing down, showing King Hu's 1967 sword-fighting classic ''Dragon Inn''. Only a few people are present in the cinema, and a variety of subplots are developed around them. Throughout the film, the ticket woman tries to find the projectionist, searching for him in order to present him with a steamed bun. She wears an iron brace on her leg. She walks around the theater throughout the film, struggling up and down stairs. A young Japanese tourist wanders around the cinema in search of a homosexual encounter. Chen Chao-jung brushes off his advance and tells him that the cinema is haunted. :zh:石雋, who was one of the actors who appeared in the original ''Dragon Inn'', watches the film with tears in his eyes. Outside the theater, he encounters Miao Tien, who had been watching the film with his grandson; Miao also starred in the original film.