Tit Chung Tong sends Wan Toi Toi away now that Wan Cheng has realized her plot. Toi secretly steals all Tong's jewelry. Poon Sing Fung decides to please Madam Ghost, becoming the spy. Despising his intention, Madam Ghost kills him. In order to defeat Madam Ghost, Lee Lok Yeung risks his life to practise the Heaven and Earth Style. Not wanting to take Lee's advantage, Tong refrains from getting the Flag though he has got the chance. However, Yeung has already found out Tang's real identity. Failing to beat Madam Ghost, Yew1g is ser seriously wounded and is rescued by Tong who takes him back home. Realizing that Tong is an upright man, Yeung gives him the key of the treasure box before he dies. Shui Ling Kwong jumps off the cliff to kill herself but is saved by Madam Ghost. After giving her a lesson, Madam Ghost accepts Kwong to be her student and names her the Fairy Girl. Tong opens the treasure box and gets the Blood Flag……
