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An evil gang attacks the Chi school of Golden Sword Kung Fu, causing a number of casualties. One student gives his life in order to save his instructor and his school, and his dying desire is that his son be accepted as a student at the school. Growing up in the school, Fang Kang holds on to his father's broken sword and the memories of his father's sacrifice. The other kids (including the teacher's daughter) are resentful of him, and they attempt to drive him away from the school. When he declines, the teacher's daughter becomes upset and violently chops off his arm! A young poor lady living alone discovers him as he retreats, shattered and bloodied, and nurses him back to health. The bad gang that assaulted the Golden Sword school initially develops a device that renders the Golden Sword ineffective and begins slaughtering all of the school's kids in the meantime. With the girl's assistance, Fang Kang is eventually able to heal, but he must now adjust to living with only one arm. What is his chance of recovering and living to defend the school in the same way his father did?