Little Tiger is a young orphan who sets out on a quest to locate his real parents.

In a small town, he encounter Duan. Though now a drunken vagabond, Duan was once a kung fu champion. When Duan refused to cooperate with Chao, a powerful local gangster, he was crippled by Chao's thugs. When Little Tiger sees Duan being bullied by Chao's men, he leaps to his defence. Duan offers to teach the younger man.
Under Duan's guidance, Little Tiger becomes a genuine master.

Chao tries every trick to prevent Little Tiger from entering the tournament, but to no avail. Using his own skills and courage, and the techniques he has learned from Duan, Little Tiger prevails.

On the eve of the tournament, Chao sends his men to kidnap Little Tiger. Luckily, Little Tiger manages to escape, and turns up to enter the tournament as planned. In the end, he is victorious, and hailed as a true champion.