In Qing dynasty China, the fate of three intertwined lives is sealed by duty, loyalty, and the unyielding pursuit of martial excellence. Li Mu Bai, a renowned swordsman of the Wudang school, has long been celebrated for his skill and honor. Now retired from the life of a warrior, Mu Bai entrusts his prized, 400-year-old sword, known as the Green Destiny, to Yu Shu Lien—a formidable warrior and head of a private security company—who has been both his friend and secret love. Their unspoken affection remains dormant, shadowed by the memory of Meng Sizhao, Mu Bai’s late close friend to whom Shu Lien was once betrothed. Bound by loyalty and respect, neither dares to reveal the depth of their feelings.
Before departing for Beijing, Mu Bai instructs Shu Lien to deliver the legendary Green Destiny to their benefactor, Sir Te. This relic, steeped in history and mystery, symbolizes not only martial tradition but also carries the weight of past vendettas. Many years before, Mu Bai’s revered teacher had been slain by Jade Fox—a cunning and ruthless woman determined to unlock the closely guarded secrets of Wudang’s martial techniques. Her actions and her subsequent quest for forbidden knowledge continue to cast a long, dark shadow over the lives of those who follow the Wudang path.
Upon arriving at Sir Te’s estate in Beijing, Shu Lien encounters Yu Jiaolong, known as Jen—the beautiful and headstrong daughter of the influential Governor Yu, who is soon to be wed. Jen’s presence in the household introduces a new dynamic to an already complex world. However, the relative calm of Sir Te’s residence is shattered one fateful evening when a masked thief stealthily infiltrates the estate and absconds with the Green Destiny. The theft sends shockwaves through Sir Te’s household, and his servant, Master Bo, along with Shu Lien, trace the elusive culprit to Governor Yu’s compound. There, they uncover a startling revelation: Jade Fox, who had long concealed her true identity by posing as Jen’s governess, appears to be connected to the unfolding events.
Before long, Mu Bai himself arrives in Beijing. In a hushed conversation with Shu Lien, he discusses the gravity of the theft and its implications for the legacy of Wudang. Meanwhile, Master Bo becomes acquainted with Inspector Tsai—a determined police investigator from the provinces—and his daughter, May, who have come to Beijing in pursuit of the notorious Fox. As night descends, Jade Fox confronts Tsai and Master Bo in a fierce showdown. In the ensuing battle, the group teeters on the brink of defeat until Mu Bai arrives and skillfully outmaneuvers Fox. In a moment of brutal honesty, Fox reveals that she had taken the life of Mu Bai’s teacher because he had succumbed to his baser instincts—engaging in intimate relations with her—while simultaneously refusing to embrace a woman as a disciple. To Fox, this was poetic justice, a fitting end for a man who had rejected the true potential of his own legacy.
Just as Mu Bai is on the verge of delivering a fatal blow to Jade Fox, the masked thief reappears, lending unexpected aid to Fox. In the chaos that follows, Fox kills Inspector Tsai and flees with the mysterious thief. The assailant is unmasked to reveal none other than Jen, whose hidden prowess in martial arts has been nurtured in secret. Unlike Fox, who can only follow the rudimentary diagrams of the Wudang manual due to her illiteracy, Jen’s ability to read and understand the manual has enabled her to surpass even her mentors.
Later that night, a bandit named Lo makes his presence known in Jen’s chambers. Lo’s appearance is no mere coincidence; their past is intricately linked. Years before, when Governor Yu and his family were journeying through the harsh western deserts of Xinjiang, Lo and his band of outlaws raided Jen’s caravan, even stealing a personal comb from her. Determined not to be outdone, Jen pursued Lo to his desert hideout, where their initial clash transformed into an unexpected romance. Lo, with his rebellious spirit, convinced Jen to return to her family, though not before sharing with her a captivating legend of a man who, by leaping off a mountain with a pure heart, had his wish granted and soared away to a fate unknown. Now in Beijing, Lo reappears with a desperate plea—he urges Jen to forsake her arranged marriage and choose a life of freedom with him. Yet Jen, torn between duty and desire, refuses to abandon her obligations.
The tension escalates when, during Jen’s wedding procession, Lo disrupts the ceremony, pleading with her to run away with him. In the midst of the ensuing chaos, Shu Lien and Mu Bai step in to mediate. They persuade Lo to wait at Mount Wudang, a place where the tumult of familial duty and societal expectations can be momentarily set aside, ensuring his safety from the vengeful wrath of Jen’s family.
As the wedding night unfolds, Jen seizes the opportunity to escape. Disguising herself in men’s clothing, she flees the confines of her marital home. Her daring flight is not without peril; at an inn along her route, a group of armed warriors confronts her. Yet armed with the formidable Green Destiny and her own honed combat skills, Jen proves to be more than a match for her assailants, emerging victorious from the skirmish.
In the aftermath, Jen seeks out Shu Lien. The veteran warrior informs her that Lo awaits her at Mount Wudang. A heated exchange ensues between the two women, and their emotions boil over into a fierce duel. Although Shu Lien is an accomplished fighter with years of experience, Jen’s determination and her command of the Green Destiny allow her to counter every weapon Shu Lien employs. Ultimately, Shu Lien prevails by disarming Jen with a broken sword. Despite her defeat, Jen is not left unscathed; in a final act of defiance, she wounds Shu Lien in the arm.
Shortly thereafter, Mu Bai pursues Jen into a dense bamboo forest, where he offers her an opportunity: he will take her as his student if she agrees to surrender the Green Destiny in three moves—a symbolic challenge that tests both their skills and their honor. In a swift display of mastery, Mu Bai manages to claim the sword in a single move. Yet, true to her independent nature, Jen reneges on her promise. In response, a pained Mu Bai hurls the Green Destiny over a cascading waterfall. Desperate not to lose the treasured blade, Jen plunges into the water after it but is rescued by none other than Jade Fox.
Fox, seizing control of the moment, drugs Jen and confines her within a cavern. It is here that Mu Bai and Shu Lien, undeterred by the setback, locate the captive Jen. The reunion is short-lived, as Jade Fox launches a sudden attack, ambushing them with a volley of poisoned needles. In the ensuing struggle, Mu Bai mortally wounds Fox, only to discover that one of the needles has found its mark in his own neck. With her final breaths, Fox confesses that her singular objective had been to eliminate Jen, whose mastery of Wudang’s secret techniques had long been hidden from her.
In the quiet that follows the chaos, a contrite Jen departs to prepare an antidote for the deadly poison that now threatens both her life and the honor of the martial tradition she holds dear. In a poignant and heart-wrenching moment, as Mu Bai’s life slips away, he confesses his long-hidden love for Shu Lien. His final words echo with regret and unfulfilled longing, and he dies in her arms, leaving Shu Lien to grapple with a torrent of grief and responsibility.
Shu Lien, despite the pain, offers Jen forgiveness and guidance, urging her to seek out Lo and to remain true to herself, regardless of the turbulent forces that have shaped her destiny. With the recovery of the Green Destiny, which is returned to Sir Te as originally intended, the threads of duty and destiny begin to weave a new pattern. Jen eventually makes her way to Mount Wudang, where she spends a fateful night with Lo—a night that promises hope and the possibility of a different future.
The following morning, as dawn breaks over the majestic peaks of Mount Wudang, Lo discovers Jen standing on a bridge, her silhouette framed against the rising sun. In a poignant echo of the legend they once shared in the desert, Jen turns to Lo and asks him to make a wish. In a moment of quiet vulnerability, Lo wishes that they could return together to the desert—a place where their love first blossomed, unburdened by duty and tradition. In a final, symbolic act, Jen leaps from the bridge into the mists below, leaving behind a legacy of honor, sacrifice, and the enduring power of love.