The eighteen jade claws are prized possessions, transmitting Arhat power to worthy fighters whose legendary feats of strength and powers bestow honour on the temple. But when misused, the power can be devastating. A mysterious assassin is killing everyone who stands in his way to claim the legendary jade claws and learn 18-Lohan style kung fu - and there is only one noble fighter alive who can defeat this ruthless killer.

Chuen Chan spares the life of the evil Miao Yi Tao (Chang Yi) in a duel, and Miao swears he'll regret it! Some years later, Chen Tai (Man Kong Lung) and Shuan Ching (Hsu Feng) leave home, with the task of escorting a special shipment to the capital. The cocky young Chen Tai disgraces a group of bandits, who happen to work for Miao. Miao investigates and suspects Miao's father has information about the whereabouts of Chuen Chan, also known as The Ghost Killer. This forces the father to disclose a terrible secret to his children.