Set 100 years after the events of A Chinese Ghost Story, Buddhist Bai Yun and his disciple Fong journey through a small town to transport a golden idol of Buddha. However, local thieves thwart their journey, sending them to take shelter at the ghostly Orchid Temple.

After escaping false imprisonment, Ling Choi-San crosses paths with a pair of rebellious women. Though mourning the loss of his ghostly love, his broken heart must heal in a hurry in order to face a new series of paranormal encounters and adventures.

A naïve young tax collector for the imperial government winds up spending the night in a haunted temple. There he falls in love with a beautiful woman who, unfortunately, is dead. With the aid of a powerful Daoist Swordsman, he must defeat undead hordes, overcome a sinister Tree Demoness, and descend to the pits of hell, to fight for the spirit he loves.