In late 19th Century Hong Kong the British may rule the land, but the pirates rule the waters. One Coast Guard officer is Dragon Ma, who is determined that his beloved Coast Guard will not be made a fool of.

Dragon is now transferred to be the police head of Sai Wan district, and has to contend with a gangster kingpin, anti-Manchu revolutionaries, some runaway pirates, Manchu Loyalists and a corrupt police superintendent.

Lung is a talented fighter but prefers to spend his time loafing around and picking fights, despite orders from his grandfather not to fight. Unknown to him, a brutal general has been slaughtering all the people from his grandfather’s clan. When the general recognizes Lung’s style of kung fu during one of his street fights, he hunts down Lung’s grandfather and kills him.