During the Five Barbarians' Rebellion, Di Mingqi (Yuen Biao), a spy of the Western Shu army, was fortunately rescued by Ding Yin (Adam Cheng) of the Nanhai School, and thus did not enter the Demon Sect. Seeing that Ding Yin was highly skilled in martial arts, he strongly urged him to come forward to save the people in heaven, and wanted to worship him as his master, but was rejected by Ding Yin. Xiaoru (Damian Lau), the head of the Kunlun School, was possessed by the blood demon in a fight with the guardian of the Demon Sect, and Ding Yin decided to take him to the Yaochi Fairy Castle for healing. Because Ding Yin was the destined person who could make the ice flame in the castle immortal, the castle owner (British Lin) who was practicing in seclusion came out to rescue Xiaoru. After Ding Yin was accidentally injured by the blood demon, the castle owner was unable to rescue Xiaoru because he had exhausted his vitality in saving Xiaoru, so he could only break the ice mirror and freeze the blood demon, but everyone was also frozen, and only Di Mingqi, Xiaoru's apprentice Yizhen (Meng Hai) and the female disciple of the fairy castle (Sarah Lee) escaped. In order to save the people of the world, the three decided to go to Tiandao Peak to look for the female hero Li Yiqi (played by Weng Qianyu) and the Ziqing swords.