Two rivals, Sheng from the South and Shao from the North, have one common enemy, the Silver Fox. The Silver Fox killed Shao's parents and robbed from Sheng's palace. When each one fails to defeat Silver Fox, the two decide to team up and win.

The twin brother of the Silver Fox attempts to avenge his brother's death and get a hidden treasure using the 8 Diagram. It is up to one hero from the original and the brother of the 2nd original hero to stop him.

John Liu stars as Shao Yu Pai, master of the "northern kick" kung-fu, still seeking revenge for the death of his brother. Evidence mounts that Lu Tung Chung (Alexander Lo), master of the "southern fist" kung-fu, is the culprit. What Shao doesn't realize, however, is that the true villain is subtly manipulating both the martial artists behind the scenes, hoping to force them into a confrontation and have the dirty work done for him.