Mao Shan Taoist and others besiege Ling Tsai-yueh, and she repulses them with magic and captures Ching-lung alive back to the palace of Lung Hu Mountain. Ling Hsiao-tien discovers Ching-lung to be a member of the Mao Shan clan, but Ching-lung kills himself to avoid being interrogated.

After completing her practice, Chi Hsiu-mei is made Tieh Shan's pupil and ordered to get Pan Tao's head back within three months. On the other hand, Ling sends Tsai-yueh down to protect Pan.

Bewitched by Priest Wen, Chen Kuang-ling wastes much money on making pills and practicing magic, causing the closure of the theatrical troupe. Pan Tao gives him a piece of his mind, but this conversely deepens Chen's belief in Wen's supernatural power.

Tsai-yueh comes to the theatrical troupe to find Pan. Not knowing her intention, Pan hides his identity. Unable to find him, Tsai-yueh offers a reward to capture him.… ...

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