In the year 1921 martial artists from various clans compete in the Canton arena. This is not just a contest between fighters, but a struggle between warlords. Young Ip Man tries his luck in the arena.

Ip Man wants to be Fung-Kau's disciple but he's only willing to teach him martial arts. Meanwhile, Ip Man reunites with his childhood love Wing-Shing and learns that Ching-Shan is working for the government.

Marshal Chu asks Fung-Kau to fight for him on stage in exchange for great rewards but Fung-Kau refuses. Ip Man and Wing-Shing overhear a quarrel between the warlords at Marshal Chu's banquet.

To everyone's shock, Marshal Chu announces that he will marry his daughter to Ching-Shan. Yan-Chiu and Brother Lo enter the final round together, while a disguised killer approaches Yam-Tong.

Brother Lo and the rest of the southern fighters are defeated. Yam-Tong is sent to the hospital. Jing-Wan introduces himself and four others as the famous Five Northern Tigers. Furious, it's Ip Man's turn to fight.

Fung Kau is forced to fight Tseung Sing, but is brutally defeated. Marshal Lo and Ching-Shan conspire to use the Five Northern Tigers to gain power, but Ip Man challenges them on stage.