During the war between the Song and Liao dynasties, the Yang family served loyally and bravely to defend the Song dynasty. Under Emperor Renzong, General Yang Liu Lang is trapped in a Liao war formation led by strategist Yelü Haonan. His son, Yang Zongbao, journeys to save him and meets female warrior Mu Guiying who helps to rescue Liu Lang. Although Haonan wishes to marry Guiying, she does not return his affections and seeks help from her master to alter her destiny. This leads to a vengeful Haonan scheming against the Yang family. Eventually, Liu Lang and his wife are moved by Guiying's sacrifice and allow Zongbao to marry her. Meanwhile, Xiao Tao Hou ascends to the throne with Haonan's help and continues to invade the Song dynasty. Haonan unexpectedly falls in love with Yang's servant girl, Pai Feng, but ultimately chooses to retreat from their relationship. Xiao's nephew Yelü Zongyuan, who discovers his roots in the Yang family, struggles between his loyalty and love for his kin...
The further adventures of Wang Wuji, Liu Xian'er, and Drunken Babe, after the defeat of Lian Bixie and Little Sword Immortal in the previous series. New threats arise in the form of two rivaling evil sect leaders, the Sun Emperor and the Moon Empress.
Wang Wuji, Liu Xian'er and Drunken Babe accidentally got involved in the struggles between them. Xian'er was even killed by the Moon Queen. Wuji cooperated with the Sun Emperor for revenge, but was betrayed by him. Later, the Sun Emperor and Moon Empress settled their differences. The two mastered supreme kung-fu and wanted to dominate the world. Wuji and the others decided to fight to prevent the catastrophe in the martial arts world.
When Kong finally returned to his home town, he was unable to continue his medical studies so he took up teaching. In his free time he went to the Cantonese Operas especially those performed by one of the leading opera singers of the time, Sit Gok-Seen. He started writing songs and plays and proposed them to Sit. His talent was soon being recognized and Sit invited him to join his opera company as playwright.