Hong-sheng fights with then Hsiang and in the end Chen purposely gives in. Hong-sheng is greatly impressed and gives his family's valued sword to Chen and asks to be his pupil. Yi Chen believes he has improved his kung-fu and leaves the School to take revenge. He is discovered by his teacher, Mo Ti, who decides to take him back to be punished. Anxious to avenge his father, Yi Chen uses tricks and gets away from Mo. Yi Chen goes to Laofoshan to take revenge on Tsai Fu and discovers that he is dead. Yi gets emotional and decides to break the tomb. He is stopped by Hsiao-hsuan who then tells him all the past crimes of Yi Kang. Yi Chen is thus caught in dilemma of what to do. The King is dissatisfied with the foreigners' ambition to take over the country and sends Yi Liang and Yang Kun to drive away the enemy, much to Lin Tze-hsu's delight. However, Yi Liang acts too rashly and Lin loses confidence in him……