Huo Yuanjia was born susceptible to illness, suffering from asthma and jaundice as a child. His father, Huo Endi, discouraged him from following in their family's tradition of practising martial arts, and hired a Japanese tutor, Yamaguchi Ejūrō, to teach him scholarly arts and moral values. Unknown to his father, Huo Yuanjia secretly learns mizongyi, the Huo family's style of martial arts.
After growing up, Huo Yuanjia becomes an accomplished martial artist and defeats a Japanese fighter, Sanaka, in a match. Sanaka commits suicide following his defeat, prompting the Japanese to send another top fighter to China to challenge Huo Yuanjia. The top fighter turns out to be Yamaguchi, who had secretly learned mizongyi during his time with the Huo family. Huo Yuanjia confronts and defeats Yamaguchi.