Shih Erh, a Taoist monk disciple, takes in a scholar named Tsui Hung-Chuen after he inadvertently burned down his house after battling a demon. Shih Erh and his master Wu Men-Chu house and attempt to protect Tsui from the demons and spirits that lurk nearby; however, Tsui encounters a benevolent female ghost named Mo Chiu, who is confined to the hands of the wicked King Ghost.
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