Failing to kill the eight Prince, Chu decides to seek refuge in the Phantom's mountain Manor. But it's actually Chu's and the Prince's plan to eliminate the Phantom men.

Chu Liuxiang is having drinks with his friend, Monk Wuhua. Gong Nanyan of the Holy Water Palace suddenly appears and accuses Chu of having stolen the palace's Heaven's One Holy Water and committed a series of murders. She agrees to give Chu a month's time to clear his name, or else the mistress of the palace will kill him. Chu's curiosity and eagerness to prove his innocence spur him to investigate the case.

A group of swordsmen set out on a journey to the mysterious Bat Island to seek answers for their problems but things go south when they run into other parties along the way.