Speculations spread as whether GWAI GUK TSU has died. LI-WAN has plotted with brother PING to grab the chief position of the Ghost Valley. They call a meeting to announce the succession of YING. To prevent objection, they lock up madam KUNG and Master YEUNG. BEN releases the two and in the meeting announces the plot of YING. As YING overpowers BEN, GWAI GUK TSU appears. He has disappeared all this time in order to find out who are the conspirators.