The film is set in the mystic 19th century of China. A villain who plans to overthrow the empire has acquired the magical scrolls that will give him access to supernatural power. To possess this supernatural power, the villain had to give up his manhood. He gradually transformed into a feminized person. Against all odds, the villain feels at ease with this newly acquired gender identity as woman and even falls in love with our hero.

Actress Brigitte Lin, originally from Taiwan, almost single-handedly played a few dozen cross-dressing roles in the Hong Kong cinema. In the documentary Yang & Yin: Gender in Chinese Cinema, director Stanley Kwan discusses with film director and producer Tsui Hark and actor Leslie Cheung (Farewell to my Concubine) on cross-dressing performances in this cinema.