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A young social outcast joins forces with the daughter of a tai-chi master to defeat the villainous intruder who seeks to construct a railway through a remote village, in the process proving that he has what it takes to become a true master himself. Yang Luchan was born with a fleshy protrusion on his forehead. As a result, he was branded the village idiot and ostracized by his cruel neighbors. Encouraged by his mother to train in martial arts, Yang makes the arduous journey to Chen village, a peaceful hamlet populated exclusively by tai-chi practitioners. But the locals are wary of sharing their secrets with outsiders, and when Yang arrives, they challenge him to a series of duels. The worst beating comes at the hands of the gorgeous Yuniang, who pummels Yang mercilessly until an eccentric old man comes to his aid. Little does Yang realize that the old man is in fact the great Master Chen, a tai-chi legend who also happens to be Yuniang's father. Recognizing the warrior buried deep within the defeated pariah, Master Chen keeps his true identity concealed while stealthily giving Yang the tools to realize his true potential. Later, when the nefarious Fang Zijing arrives in town on a steam-powered leviathan and announces his intentions to build an unwelcomed railway through Chen village, Yang teams up with Yuniang to demolish the machine, thwart Fang's plans, and unlock the tai-chi warrior within.