The Hong Kong super-cop must stop a group of blackmailing bombers at the same time that the villains of the first Police Story are out for revenge.

A country boy becomes the head of a gang through the purchase of some lucky roses from an old lady. He and a singer at the gang's nightclub try to do a good deed for the old lady when her daughter comes to visit.

Married boss Paul falls for his employee named Monica after running into her in a subway station and it makes all things uneasy for her.

Four new Banshee Squad Members join the Hong Kong Police Academy to undergo training supervised by Madam Wu. Their personalities don't click with the current Squad Members, resulting in petty arguments and duels. However, they later make peace with one another as they join the Tiger Squad Members, supervised by Inspector Kan, to undergo new training courses together and combine forces to take down a band of terrorists.