In the sequel to Tai Chi Zero, Lu Chan is still trying to build a career as a great martial artist after saving the villagers of Chen. But when he discovers the dark secrets of his past and the power of his Tai Chi, he must confront a new enemy and save his village once again.

In the late 19th century, a young martial artist named Yang Luchan travels to Chen Village in order to learn Tai Chi, but encounters resistance from the villagers who view him as an outsider. However, when a powerful steam-powered machine threatens the village, Yang's unique skills may be the key to saving his home and the ancient martial art of Tai Chi.