Chen Chen returns to his former school in Shanghai when he learns that his beloved instructor has been murdered. While investigating the man's death, Chen discovers that a rival Japanese school is operating a drug smuggling ring. To avenge his master’s death, Chen takes on both Chinese and Japanese assassins… and even a towering Russian.

A brother and sister escape from Japanese-occupied Shanghai to Japanese-occupied Taiwan, to stay with their grandfather who runs a Kung-Fu school there. However, the master of a Japanese Kung- Fu school in Taiwan has plans to bringing all other schools on the island under his domination, and part of his plan involves the murder of the grandfather.

After Chen Zhen's execution in Shanghai, the Japanese feared that his death would unite all Chinese kung fu schools against them. Fearing this, the Japanese gave orders to the head of the Hong Ku School, Miyamoto (Lo Lieh) to surpass all Chinese schools including the Ching Wu School. When they refuse, the Japanese beat up the students and destroys the school. Meanwhile, one Chinese learns about the destruction of the Ching Wu School when he goes to Shanghai to visit Chen Zhen's grave. This Chinese is the only one who has the guts to fight the Japanese, this Chinese is known as Chen Shen (Bruce Li) who is the brother of Chen Zhen and he vows to avenge his brother's death and end the terror of the Japanese once and for all.

After avenging the death of his brother, Chen Shen (Bruce Li) returns home from Shanghai. He tells his mother (who went blind from crying over her son's death) that he will no longer fight. However, being a movie with the words "fist" and "fury" in the title, Chen doesn't keep his promise for very long. Japanese occupiers who are aware of Chen's history terrorize his family by, among other things, vandalizing his mother's store and beating up his brother. Later, they frame Chen for a murder. After the Japanese boss arrives in town and causes a ruckus, Chen breaks out of jail for a final confrontation.