When Li Mu Bai decides to retire, he entrusts his fabled blade to Yu Shu Lien to deliver it to the governor. But when the blade gets stolen, Mu Bai comes back to retrieve it, only to discover a connection between the theft and the woman who had killed his mentor.
As she still mourns her love Li Mu Bai 18 years after his death, the warrior-maiden Shu Lien travels to Peking to protect his legendary sword the Green Destiny, as she teams up with a group of fighters to stand up against a warlord who's after the sword.