'Ghostly Mother Blue Flower' Chiu Choi-wan has abducted a group of virgin boys and girls for the nourishment of her mind and soul. Alarmed by the abduction, Yiu But-fan, Kau Suet-mui and Hung Tin-bo make a night raid on the Hanshan Temple to release the children and set a torch to the bandit lair. Fuming over the arson, Chiu casts a spell on Kau, who kills the father of Chuk Yuk-heung in her cross-dressing persona as Yiu. Confronted by the angry Chuk clansmen at the Chuk Fortress, Yiu tries futilely to defend his innocence. Believing that Chiu has masterminded the framed murder, the fugitive infiltrates the White-bone Yinyang Cave where he finds himself attacked by Kau and Chiu. Demon-vanquishing Magic Monk, Chuk and Hung helped Yiu wrestle Chiu, who fled. Kau is nursed back to health by the monk and joins the fellowship in their quest to annihilate the demon. With all her venomous needles forfeited to the monk, Chiu gets her comeuppance, slain by Chuk's flying dagger.

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