Li Mu Bai(Yun-Fat Chow), a great warrior decides to turn in his sword, the Green Destiny to a treasured friend. When the sword is then stolen, it is up to him to retrieve it. At the same time he is trying to avenge his master's death by the evil Jade Fox(Pei-pei Cheng). He is joined in his quest by Shu Lien(Michelle Yeoh), the un-conceded love of his life. During all of this, they are introduced to Jiao Long Yu(Ziyi Zhang), the mysterious and beautiful daughter of a well known family. She is the mysterious link to all these tales. But through all the many subplots, this is in essence, a love story.