Northern Shaolin Temple. Warrior monks in white robes are training under the guidance of the most senior brother, Tan Qian, keeping in mind Abbot Zhi Yi's words: You must remember, there are no limits to learning. The highest stage in martial arts learning is to harmonize kungfu completely with Zen. You must be flexible. A martial artist who is not capable of assimilating the nature's virtues would not be able to deeply understand the essence of Buddhism and martial arts. Tan Zhi (Wu Jing) is working very hard punching furiously at the tree bark, disturbing Tan Fei (Ji Chun-Hua) who is asleep. They quarrel with each other and San Jiao (Chun-Yu Shan-Shan) tries to be the peacemaker. San Jiao doesn't put much effort in training and is always fantasising about immortals imparting skills to him. Tan Zhi wants him to learn real kungfu and not frivolous tricks, so as to avenge for their families. Looking back, Lu Zhong-Yu entrusted the abbot of Northern Shaolin Temple, Zhi Yi, with the letter written in blood containing incriminating evidence of conspiracy between Minister Tong Da-Bao (Yu Cheng-Hui) and the Japanese Brigands. He also put Qi Shao-Zheng (Tan Shi's secular name) and Lu Zi-Feng (San Jiao) under his wing. When Tong Da-Bao failed to find Qi Shao-Zheng in Lu Mansion, he massacred the entire Lu family. Tan Zhi is hitting at the bark ferociously and doesn't stop even when his hands are bleeding. Abbot Zhi Yi shakes his head, saying that his mind is too pre-occupied with vengeance that the way he trains would not be fruitful. Tan Zhi is not convinced and Abbot Zhi Yi orders Tan Qian to test his skills. Tan Zhi loses but still refuses to submit. Zhi Yi reveals that Tan Qian was using Form-Meaning Fist of Eight Trigrams, which was founded by General Yue Fei and brought to glory under his father, General Qi Ji-Guang's hands. Their conversation was overheard by Tan Fei, a former bandit. He secretly leaves the temple, defects to Tong Da-Bao and inf