This continuation of A Chinese Ghost Story reunites some of the original cast. Ning Leslie Cheung, the wandering scholar from the first film, is mistakenly imprisoned. An old man helps him escape and gives him a medallion for good luck. Ning meets a group of rebels, and the medallion causes them to mistake him for the old man, who turns out to be a well-known sage. Joey Wong, who played the ghostly heroine in the first film, portrays Windy, the leader of the rebels. Ning falls in love with Windy because of her resemblance to his past love and joins in a struggle to save her father from an evil warlord. The romantic element is toned down from the original; this installment emphasizes outrageous martial arts sequences, creatures, and special effects.