A movie within a movie, created to spoof the martial arts genre. Writer/director Steve Oedekerk uses contemporary characters and splices them into a 1970s kung-fu film, weaving the new and old together.
As the main character, The Chosen One, Oedekerk sets off to avenge the deaths of his parents at the hands of kung-fu legend Master Pain. Along the way, he encounters some strange characters

The anti-Ching patriots, under the guidance of Ho Kuang-han, have secretly set up their base in Canton, disguised as school masters. During a brutal Manchu attack, Lui manages to escape, and devotes himself to learning the martial arts in order to seek revenge.

A one-armed martial arts master is being stalked by an Imperial assassin, the master of two fighters (the Tibetan Lamas) who were killed in the previous film. When the One-Armed Boxer is invited to attend a martial arts tournament, his efforts to lay low are unsuccessful, and the assassin soon tracks him down with the help of his three subordinates competing in the tournament: a Thai boxer, a yoga master, and a kobojutsu user.