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Northeastern China is infested with bandits. Hsiao Kai (Paul Chang Chung), a wandering knight, captures a white horse from thieves. His skilful handling of the horse earns his admiration of fellow traveler Chu Ching Hsu (Wong Chung Shun). They arrive at Lo Lung Kow, where the villagers hunt for a living and are constantly terrorized by bandits. Grocer Ting Tze Pao (Ngai Ping Ngo) returns from his negotiations with the bandits with bad news. They intend to collect furs from the villagers at a fixed price. Village leader Mu (Yuen Sam and his daughter Tsui Ying (Pat ting Hung) run a tavern. She wonders how the white horse belonging to a Sinkiang youth named Sha Yi Ti (Man Ling) is now in the possession of Hsiao Kai.