This story begins in the historical past (most than likely in the Tang dynasty - since Lam Ching Ying recites the name of a Tang emperor in the hospital). A holyman/Sifu and his assistant Sai Gwai team up with a local official Dai Yat, and are soon attacked by a Japanese warrior, who is assisted by a princess. The battle somehow transports them to the present day, where they wander around and try to adjust. Clearly a nutcase, Sifu is committed to an asylum, where his counsellor Gigi is a reincarnation of the princess. Meanwhile, the evil Japanese warrior has secreted himself in the cross of a Catholic Church, where Dai Yat and Sai Gwai are staying. All of this builds up to a good vs evil battle which, somehow along the way, manages to bring in Anthony Wong as a psycho who stalks Gigi.