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Lo Lei plays Chao, a young man who has trained all his life. After
his master is attacked on day, he sends Chao to another school to
further his training for an upcoming tournament.
Meanwhile, a rival school plots to get rid of Chao's master. But when
Chao arrives at his new school, he is easily beaten by the other
students so the master send him to do chores instead of training
him. But all the while it was a test and he is taken in by the
teacher as a student. The others give him a hard time, but when his
school is insulted he shows that he can hold his own by beating
they're best man.
When his master sees his display of bravery he gives Chao his Iron
manual and he learns the Iron Fist technique. The rival school then
sends out for Japanese assassins to kill the opposition. Soon after,
one of the school members betrays Chao and sets him up. They hold Choa
down and break his hands so he can't use the Iron fist. But with
determination and hard work, he is able to heal his hands and use the
Iron fist once again.
But unknown to him, his old master was killed by the Japanese. On the
way to the tournament Chao has been training for, the Japanese ambush
him in order to delay him. He defeats the Japanese and makes it to
the tournament. He wins, but finds out both of his masters were
killed. He takes revenge on the school and the Japanese by killing
them with his iron fist.