It is three years after the infamous Dragon Inn was burnt down in the desert. When its innkeeper Jade vanished, a new gang of marauders had taken over: innkeepers by day, and treasure hunters by night. The inn is the rumoured location of a lost city buried under the desert, and its hidden treasure would only be revealed by a mighty storm every sixty years. Now, the storm is coming...and the situation becomes more complicated when a pregnant concubine who escaped from the palace comes to the inn. The concubine was saved by a mysterious woman and the two fled to the Dragon Inn...but hot on their trail is the Imperial Assassins led by the powerful eunuch Yu followed by the righteous general Zhao (international action star JET LI), who is determined to take down Yu to restore order to the palace.