The Third Sword

Nick and Ruben are hoodwinked into a "shootfighter" (no-holds-barred, to the death) martial arts match by the evil Mr. Lee, who has a grudge against world shootfighter champ(and teacher of Nick and Ruben) Shingo.

In legendary Chen Village, everyone is a martial arts master, using their powerful Chen Style Tai Chi in all aspects of their lives. Lu Chan has arrived to train, but the villagers are forbidden to teach Chen Style to outsiders, and do their best to discourage him by challenging him to a series of fights. Everyone, from strong men to young children, defeats him using their Tai Chi moves. But when a man from the village's past returns with a frightening steampowered machine and plans to build a railroad through the village at any costs, the villagers realize they may have no choice but to put their faith in Lu Chan... who has a secret power of his own.

Chen returns to his school when he finds out that his martial arts teacher has died. When he learns that his school students are harassed by some hooligans, he gears himself up to save them.

After the events of The One-Armed Swordsman (1967), a retired Fang Gang is drawn back into the jianghu to protect various young apprentices whose swordsmanship schools have been terrorized by 8 evil swordsmen seeking to rule the jianghu.