The film starts with Bold Cheung having a nightmare about ghosts.
Bold Cheung is challenged to spend the night in an abandoned house where he must peel an apple in front of a mirror. If he breaks the skin then something bad will happen. Upholding his mantle as the boldest he accepts. However, that night whilst peeling the apple his friends trick him. Whilst scolding his friend for the prank a real ghost appears and snatches Cheung's friend away. The ghost reaches for Cheung but he cuts its hand off and then quickly shattering the mirror, causing the house to collapse.
The next day Cheung overhears a story about a promiscuous wife from a sweet tofu seller (Who admits that something similar happen to him and his wife); he goes to his home to check on his wife and finds two peeping toms outside his door. He scolds them, causing his wife and employer, Master Tam, to hear. Tam escapes but leaves his shoe which Cheung finds and confronts his wife with. His wife pulls a tantrum and makes Cheung feel guilty.
Master Tam is worried Cheung will find out about the affair so he hires a witch, Chin Hoi, to get rid of him. When Chin mentions this to his partner Priest Tsui, Tsui gets angry. Cheung is tricked into spending the night in a temple, but he encounters Tsui who tells him that he must sleep on the roof. Cheung does so. A coffin in the temple opens and a zombie begins looking for him but he is safe. Chin gives up when he cannot find Cheung (he is controlling the zombie) just as Cheung falls down. Chin and the zombie look for Cheung again. He hides under the coffin but is found, the two fight and Cheung kicks the zombie back into the coffin and seals the lid.
Cheung is tricked into spending another night in the temple. Again he meets Tsui who tells him to collect fifty chicken eggs to throw into the coffin. If he runs out of eggs he must throw dog's blood over the zombie. However, the egg seller puts in ten duck eggs. That night Cheung throws in eggs when the coffin begins to open and it works. However when he throws a duck egg inside, the zombie escapes so Cheung throws the dog's blood onto it which sends Chin flying into Tam's roof severing his control of the zombie.
Cheung goes back to town but an Inspector arrests him for murdering his wife even though it is a set-up. Cheung is thrown in prison but escapes by pretending to be sick, he beats up the guards and runs into a forest where he trips over a coffin exposing the corpse within. As Cheung sleeps it comes to life and begins chasing him. Whilst on the run from the corpse Cheung bumps into the Inspector and his men. The zombie collapses onto the Inspector giving Cheung time to escape.
Cheung meets up with Tsui who wants to take Cheung as his disciple. As they stop to eat, the Inspector shows up and sends his men after Cheung. Chin is also there and manipulates Cheung's right arm to beat up the people around him and himself however Tsui stops him in a sword fight and Chin escapes. To help Cheung, Tsui uses his magic to manipulate the Inspector's men to fight the Inspector whilst he and Cheung escape. That night Chin sends a vampire after Tsui and Cheung but they defeat it. Tsui draws markings on Cheung's body to protect him from Chin's magic. They go to Tam's house to challenge Chin. Both sorcerers use magic to instill spirits into their disciples. Cheung is possessed by a monkey god. The two possessed apprentices fight with Cheung winning. Chin then possesses Master Tam with the spirit of the sword god but Cheung kills him. Then the two sorcerers unleash their magic on each other. Just as it looks like Chin will win Cheung cuts the legs off his altar which causes Chin to lose balance giving Tsui a chance to hit him with magical fire, Chin is set ablaze and falls off his altar to burn to death. However, Tsui is badly hurt by Chin's magic and he too falls off his altar dead. Cheung's wife steps forward in all the madness and tries to convince Cheung that Tam was about to rape her. However, Cheung is not deceived and he attacks her.
Sammo Hung - Bold Cheung
Chung Fat - Priest Tsui
Lam Ching-ying - Inspector
Peter Chan (Chan Lung) - Priest Chin Hoi
To Siu Ming - Ah To / Ah dooh / Cocky
Huang Ha - Master Tam (as Wong Ha)
Dick Wei - Master Lok
Cheung Ging-Boh - Uncle Fok
Tai Bo - Adviser Lau
Yuen Miu - Ah To's friend / Prison Guard
Pang Yun-Cheung - Ah To's friend
Wellson Chin - Police officer
Ng Min-Kan - Police officer
Leung Suet Mei - Cheung's wife
Billy Chan - Cheung's friend
Ho Pak-Kwong - Peeping Tom
Yuen Biao - Vampire
Lau Chau Sang - Guard
Wu Ma - Ah Chiu Fa Kau
Billy Chan - Driver