Lotus tries to seduce him many times the first night, but after he finds out she is a ghost she attempts to kill him on orders from the tree demon but he saves himself by reciting mantras repelling her. The tree demon knows of the residing monks and tell a female ghost Lotus to go and seduce Shi fang. While meditating, the monks hear the commotion and master Bai Yun goes to investigate telling Shi fang to stay in the temple. The bandits then are captured by the tree demon and are all killed. As the bandits run off they hear female ghosts singing and mistake them to be living humans. As the bandits make a move on them, one of them trips over a corpse arm and mistakes it for a ghost tripping him and they all run off scared since Lotus Temple was rumored to be haunted. Unknown to the monks, they were followed by bandits from town. Beset by the thieves and ne'er-do-wells in the villages, the monks go to spend the night at the local temple, which is none other than the Orchid Temple of the first film.
On their travels they meet the relatively honorable mercenary Taoist Yin (It is revealed later that he was named after the Taoist swordsman Yin from the first movie and had even been rejected by him when he asked to be his student.) When talking to a merchant, Yin accidentally cuts the roof off Shi fang’s backpack revealing the golden Buddha statue.
The film starts with a flashback to the first film with Taoist Yin sealing away the tree demon, but tells the scholar Ning Tsai Shen that it will reawaken in 100 years.įast forward 100 years later, two Buddhist monks master Bai Yun and his inept disciple Shi Fang are transporting a golden idol of Buddha.