While touring Mount Hua, scholar Liu Yanchang is accosted by bandits. The Goddess of the Mountain comes to his rescue. They fall in love and commit themselves to matrimony. Although the demon-fighting god Erlangshen attempts to intervene, the goddess defeats him with the power of the Magic Lotus Lamp.Erlangshen retaliates by having his Celestial Howler Canine steal the lamp, depriving the goddess of her power. The goddess is besieged, captured, and imprisoned at the foot of Mount Hua. Liu is grieved by what has befallen his wife; with only the help of the Goddess's maid, he has no choice but to move on with his life. Liu descends the mountain with Chenxiang, the child the Goddess bore him.
Back in his hometown, the scholar marries a mortal woman, Wang Guiying, who gives birth to a child named Qiu'er. Ten odd years later, Liu’s elder son,Chenxiang, has grown up into a young man and a regular champion of justice. One day, catching the prime minister’s son, Qin Guanbao, taking liberties with a woman, Chenxiang and Qiu'er become so enraged that they kill Qin during a scuffle. Incensed, the prime minister orders their arrest. The brothers rush home and admit their crime. Despite her sorrow, Wangdecides to turn Qiu'er in and finally reveals to Chenxiang the truth about his mother. Surprised and saddened,Chenxiang bids farewell to his parents and brother to meditate on the mystical. Having attained immortality and magic power, Chenxiang defeats Erlangshen and rescues his mother.