The novel's protagonist is Yue Buqun's most senior apprentice, Linghu Chong, an orphaned, happy-go-lucky but honourable swordsman who has a penchant for alcoholic drinks. He befriends the notorious bandit Tian Boguang and saves Yilin, a nun from the (North) Mount Heng Sect, from Tian's lecherous advances. In the meantime, Liu Zhengfeng of the (South) Mount Heng Sect announces his decision to leave the "jianghu" and invites his fellow martial artists to witness his retirement ceremony. The event turns into a bloodbath when Zuo Lengshan, the chief of the Mount Song Sect, and other "orthodox" sects accuse Liu Zhengfeng of being unfaithful to their alliance by befriending Qu Yang, an elder of the "evil" Sun Moon Holy Cult. Liu Zhengfeng and Qu Yang are cornered by Zuo Lengshan and his men and eventually commit suicide. Before dying, Liu Zhengfeng and Qu Yang give Linghu Chong the score of "Xiaoao Jianghu", a musical piece they composed together. (The Chinese title of the novel comes from the name of this fictional piece of music.)