Knowing that Shui Ling Kwong agrees to the marriage, Tit Chung Tong, in sorrow, approves it. Meeting Tong, Kwong inclines to changing her mind but is persuaded and stopped by Tong.
Wan Yick goes to Madam Ghost, asking her for the Blood Flag, Madam Ghost reacts intensely. That year, Wan Yick and Madam Ghost had an affair and subsequently had a son. To keep a good reputation of the Sect of Blood and Iron, Yick leaves Madam Ghost, taking his son with him. To take revenge, Madam Ghost vowed to kill Yick. Yick reveals that Tong is their son, much to surprise Madam Ghost.
Fung Sor attacks Wan Yick, Madam Ghost takes the Blood Flag but the two are defeated by Sor. In the critical moment, Madam Ghost hides the flag in a big tree. Sor kills Wan Yick while Madam Ghost, wounded, makes her escape.
Before Madam Ghost dies, she tells Tong who he is and where she hides the Blood Flag……