The story continues from after Chen Zhen's apparent death in the previous series. Chen has actually survived and he travels to Beijing with Huo Yuanjia's orphaned son, Huo Dongjue. Chen Zhen changes his name to "Cheng Zhi'en" and works for the Fang family there. He dedicates himself to raising and grooming Huo Dongjue to become a worthy successor to the Huo family line. At the same time, Chen Zhen strikes up a romantic relationship with Fang Zhixin, the daughter of his boss. He also befriends Huangfu Yizhen, a former martial arts champion.
Chen Zhen becomes involved in the rivalry between the Fang family and the Hongkou Gang, and he secretly helps the Fangs while in disguise. His true identity is eventually exposed and he goes into hiding to escape from the police. Initially, Chen Zhen is more concerned about reviving Jingwu School, his late teacher's legacy. However, over time, Chen Zhen begins to understand that he needs to defend China from the aggressive Empire of Japan. Chen Zhen continued to participate in missions to disrupt the Japanese's plans for invasion until the Marco Polo Bridge Incident in 1937, which marks the beginning of the Second Sino-Japanese War. On the night before the Japanese invaded Beijing, Chen rallies his allies to destroy the Japanese secret agency's base in the Hongkou dojo. Chen sacrifices himself in the battle and becomes a martyr.