The town is rumoured to be haunted. Cheung Siu-chen pretends to be possessed so that her lover Lau Tin and his friend Lee Luk may heroically exorcise the ghost and curry favour with her father. Driven by greed and lust, the attendant of the ancestral temple and his underlings cast an enticing spell on Cheung and claim that Cheung is possessed with a fierce ghost. Lau and Lee expose the hoax and redeem Cheung. Cheung's father happily gives his consent to the marriage between his daughter and Lau.

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