Hong Qigong teaches Yang Guo his Dog Beating Staff Technique. Ouyang Feng has apparently lost after Yang Guo performed the last stance, No Dogs Under Heaven. Ouyang Feng spends the following night thinking of a countermove. The next morning, he asks Yang Guo to perform for Hong Qigong, who is shocked when he sees that Ouyang Feng has overcome his most powerful skill. Hong Qigong finally realises that there will be no eventual victor between the two of them. He laughs hysterically and embraces Ouyang Feng in defeat. At the same time, Ouyang Feng seems to have recovered from his insanity as he finally recognises Hong Qigong. The two rivals die together in the midst of laughter and forgotten past feuds. Yang Guo buries them side by side on Mount Hua.