This is the third in a series of movies featuring creatures from Chinese ghost stories. It begins with a scene from the first movie of the series, which shows the hero in an epic conflict with something called the Tree Devil, which has been put to sleep for a hundred years. Now it is "later," and the story focuses on two traveling monks, a scholarly disciple and his aged master, who are traveling the countryside bearing an image of the Buddha to be given to a particular shrine. One night they stay at a haunted temple and become the focus of the amorous attentions of two sexy ghosts, who are in league with the Tree Devil.