Back at the imperial palace, the emperor and the princess are planning their escape because they feel like they are in prison in the palace. They separate their ways and escape. Unfortunately, the emperor gets captured and is brought to his mother, the Empress Dowager. Since the emperor is cowardly especially to his mother, he dares not speak for his sister. The imperial guards report that the princess has escaped. When asked by the Empress Dowager of how she escaped, the guards gave three different accounts. The first story was that the princess used special flying martial arts skills to fly over the palace walls. Another story was that she used her amazingly hard head to crash through the palace gates. The last story, which was true, was that the princess just walked casually out because everyone was busy looking for the emperor. The Empress Dowager sends imperial guards to capture the princess. After her escape, the princess dresses in a man's costume. She gets robbed and so she has no money left.

In a different part of China, the infamous Bully the Kid also known as Li LiYong is getting ready to fight with rivals. He charges his horse at the other gang members but everyone is stopped by officers. The head officer tickets Li LiYong for carrying weapons over 1 kg and also for speeding. He shows Li LiYong some pictures that were taken of Li LiYong while he was committing crimes. In actuality, the officers have a machine that takes pictures of people but there is really someone inside the machine painting these pictures. The head officer true identity is Li LiYong's old teacher. He tells Li LiYong to stop his wandering and return home. Li LiYong listens and returns to his hometown of Meilong.

At Li LiYong's arrival to Meilong, all the villagers flee because of his reputation of beating people up. Only a young woman stands up to him but this was his sister, Phoenix. They decide to play fight but are horrible at martial arts. Suddenly a man by the name of Zuo Lengchen challenges Li LiYong to avenge his brother. Zuo gets badly beaten by Phoenix and Li LiYong. According to Zuo's account, Li LiYong had powerful martial arts skills. This was false because Zuo was beaten by sticks. Li LiYong talks to Phoenix about marriage but she says that because of his reputation, no one has asked her. Another reason for her delayed marriage is because Phoenix dresses as a man most of the time. Li LiYong meets up his blood brothers and is introduced to a new one by the name of Amour Amour (Athena Chu). In the morning, Li LiYong announces to the villagers that if any man can pass his hands through the sacred fire of Meilong unhurt then he can wed his sister. In addition, Li LiYong vows to leave Meilong forever. Every eligible man in Meilong lines up for this because they want to rid the town of Li LiYong, but no one passes the test.

Back at the family restaurant, business is going very bad because people fear Li LiYong. He tries to persuade people to eat there but people flee for their lives. One man pretended to die so he didnt have to eat there. Li LiYong gets an idea and goes to the rival restaurant to eat there. All the customers there run away scared and go to his restaurant. The restaurant owner pleas with Li LiYong to leave but he doesnt. A man throws water at the door just when the princess is entering. She flies in midair and does a back flip. Everyone claps. Li LiYong observes the man and since he is handsome and athletic, Li LiYong decides to arrange his sister with the princess. The princess accepts Li LiYong's invitation to dine because she is broke. The restaurant owner tries to come up with a plan to get Li LiYong out of his restaurant. Li LiYong and the princess eat and drink for a long time. Phoenix eyes the princess is falls in love with him/her. After the meal, the princess bids farewell. Li LiYong gives the princess some money. Now there are again three accounts of this departure. Li LiYong's account is that the princess hugged him. The princess's account his that Li LiYong hugged her. The restaurant owner's account is that they both hugged each other and cried. There are many scenes of the two hugging but with a different background. The princess finally departs.

That night they have a party and get drunk. The princess tells Li LiYong and Phoenix that she is a woman and dresses as a woman. Phoenix tells them that she is a man and dresses as a man. Li LiYong tells them that he is a woman and dresses as a woman. The three end up sleeping in the same bed. In the morning, the princess realizes what had happened. She is worried but when she sees Li LiYong, she knew she had fallen in love with him. On the other hand, Phoenix now is deeply in love with the princess. The three decide to go out that day. They go to a fortuneteller. The fortuneteller is Amour Amour, in disguised. He tells them their futures. When the princess and Phoenix look into a bowl of water, the fortuneteller tells them that they have a sisterly path. When Li LiYong and the princess look into the bowl of water, the fortuneteller predicts that they will be husband and wife. Phoenix gets mad and runs away crying, while Li LiYong chases after her to console her. The fortuneteller then warns the princess that she can only be with Li LiYong if they play their roles reversed and the Unique Destiny Rings are worn. The princess laughs because she tells the fortuneteller that she is a man. However, she heeds the warnings. While walking back to the restaurant, imperial guards in disguised bid the princess to return. She runs away but accidentally bumps into the son of the local magistrate. He takes her to court after she punches him. All the imperial guards follow the princess to the court. The beat up the magistrate and dismiss the trial. Li LiYong and Phoenix also show up to the courthouse to free the princess, but she is already freed. As the three leave the courthouse, a troop of imperial guards bow their heads to the princess. The princess realizes that she can't escape. She tells Li LiYong that he has to listen to his future wife and understand her circumstances. Li LiYong doesn't understand because he still thinks that the princess is a man. Phoenix cries because the princess has to leave. However, the princess will only cry in Li LiYong's arm making Phoenix mad. The princess then bids farewell and leaves.

Back at the restaurant, Li LiYong and Phoenix open the princess's luggage and finds a golden robe in it. They mistaken the princess as the emperor because only royalty can wear gold. People pronounce all over Meilong that Phoenix's boyfriend is the emperor. When Amour Amour hears about this, he also leaves. Li LiYong decides to set out to find the emperor and settle the relationship between the emperor and his sister. On the way to the palace, the royal caravan suddenly encountered a huge windstorm. In the midst of the confusion, the princess runs away. Back at the palace, the Empress Dowager is furious that the princess disappeared again. The emperor asks his mother to let him go and find his sister. She agrees.

Phoenix is busy with her chores when Zuo returns to challenge her. She is unable to beat him. Zuo is about to slash her when the emperor, impersonating a man name Mr. Ko, rescues her. He uses the famous Romancing Eye technique and wins Zuo. The emperor and Phoenix fall in love. He decides to stay. Meanwhile, Li LiYong is desperately trying to find the princess. He runs across the grass but falls into some mud and gets stuck. The princess sees Li LiYong and jumps into see him but gets stuck up to the head in the mud. Li LiYong is only stuck up to the knee. He tells her that he will get them out using his special kungfu. Li LiYong jumps but gets stuck deeper in the mud. Now both of them are stuck in the mud up to their heads. Li LiYong then gets hit by lighting and it starts to rain. After the rain, Li LiYong traps some dew in a leaf for the princess to drink. In the morning, they are rescued by villagers. They have a feast and start singing. In the song, the princess tries to hint to Li LiYong that she is a female. She said things like chopsticks come in pair and their friendship is more than brotherly love. Li LiYong still doesn't understand. In the morning, they go to a frozen lake with a peach blossom tree in the middle. Li LiYong breaks her a branch. They decide to depart. Li LiYong says that he will miss her and if she had a sister he will marry her. The princess is overjoyed and so she reveals that she is a female. She then kisses him. Li LiYong starts to cry because he realizes that he loves her too and that he had just taken his sister's love. They decide to go home.

Meanwhile, the emperor goes gambling. Phoenix finds out and gets upset. He gives the money back but gets hit by a cart. Phoenix then asks for the license number and address of the driver. The emperor gives Phoenix back her bracelet that he had fixed. She now realizes that she is really in love. (Li LiYong and Phoenix were both give a jade bracelet so that they could give to their husband/wife.) The emperor and Phoenix hold hands and put it through the sacred fire of Meilong. They are unhurt thus proving that they are truly in love. Li LiYong and the princess return to the restaurant but their reunion with Phoenix and the emperor is cut short. The Empress Dowager has come. She splits up the relationships. The emperor finally has the courage to speak out. He screams out that he will marry Phoenix. The Empress Dowager is rather happy because she now understands her son is ready to be emperor. She accepts the marriage. As for Li LiYong, she disapproves of him. The royal officer reads Li LiYong's reputation to the Empress Dowager. She takes out the Unique Destiny Rings and gives them to the princess. If the rings do not fall of their fingers then it is true love, if it falls off Li LiYong must leave forever. The princess puts the dragon ring on Li LiYong and puts the phoenix ring on herself. Li LiYongs ring falls off. He looks at the princess for the last time and bids farewell to his sister. Then he leaves.