Fang Gang has hung up his signature broken sword and is living peacefully with his wife. However, a band of tyrannical sword masters take over the country, using their own signature styles and unique weapons to conquer all the sword fighting schools. They capture all the masters and teachers of the schools and deliver an ultimatum: all the students must cut off their sword arms and surrender the severed limbs to the evil warlords, or the students' beloved teachers will all die. The students turn to the legendary One-Armed Swordsman, who is at first reluctant but is convinced when a student actually does sacrificially chop his own arm off when he refuses to help...