Chi-Hao meets a young female singer, Yen Chu Hung, on the road to the city and rescues her from Dung-Shun's thugs. She falls in love with him, but he resists her advances with difficulty. He reaches town and begins studying under Suen Chin-Pei. After an initial beating by Chin-Pei's star pupil, Han Lung, Chi-Hao improves rapidly. One day, another thug of Dung-Shun's, Chen Lang, breaks into the school and beats all of Chin-Pei's students. Chin-Pei finally arrives and fights him, but is struck by a dishonorable blow and severely wounded. Chi-Hao tracks Chen Lang down and defeats him. When Chin-Pei hears of this, he selects Chi-Hao to receive his most deadly secret, the Iron Fist.