Cho Yi-Hang (Leslie Cheung) awaits on a snow-capped mountain for a rare flower to blossom. The White-Haired Witch Lien Ni-Chang (Brigitte Lin) felt betrayed by her lover Cho and has since morphed into a vicious white-haired killer. She founds a feminist cult which accepts female members who were exploited by men and among them include Chen Yuen-Yuen (Ruth Winona Tao) who had been betrayed by her lover General Wu San-Kuei. Lien vows to kill all the surviving members of the Eight Great Clans of the Central Plains, whom have labelled her as their sworn enemy. The cult's aim is to defend the rights of all women and kill men who oppress and exploit women.
Cho Yi-Hang's disciple nephew Fung Chun-Kit (Sunny Chan) is the heir to the Wu-Tang Clan which had been completely wiped out in the prequel film. He marries Lyre (Joey Meng) with the elders of the Clans as the matchmakers. On their wedding night, Lien Ni-Chang shows up and kidnaps Lyre, leaving behind a trail of destruction and corpses. Fung survives the massacre and pledges to rescue his wife from the clutches of the Witch.
Along with the surviving descendants of the Eight Clans, Fung plans to infiltrate the Witch's headquarters and rescue his wife. Meanwhile, Lien has brainwashed Lyre through a series of rituals and made her see her husband and the Eight Clans as enemies. Fung Chun-Kit and his friends fight against the Witch and her followers to rescue Lyre but fail and many of the heroes perished. The Witch's followers pursue them back to their hideout and engage them in a bloody battle.
Eventually, only Fung and his friend were left of the group. They travel to the snow-capped mountain in search of Fung's disciple uncle Cho Yi-Hang, who is the only person who can stop Lien Ni-Chang from continuing with her brutal massacres. After enduring hardships, they did not find Cho at all on the mountain and return to the Witch's headquarters with a final attempt to rescue Lyre or perish in the attempt. They confront the Witch but were defeated.
At the critical moment, Cho Yi-Hang finally appears and stops Lien Ni-Chang from killing Fung. Their old flames of passion were rekindled and Lien's anger and hatred gradually subsided. Cho had been wounded by Lien, who had used her hair to pierce through his body. If the hair strands were pulled out, Cho would die. Just then, Chen Yuen-Yuen stabs Lien Ni-Chang for betraying the cult's principles. Lien pulls her hair out from Cho's body at the same time and both of them were critically wounded.
The film ends with the deaths of Cho Yi-Hang and Lien Ni-Chang, who finally forgot their past feuds and were laid to rest together as lovers. At the same time, Fung Chun-Kit is also reunited with his wife Lyre, who had recovered from her trance.
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