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.

Brother Lo and the rest of the southern fighters are defeated. Yam-Tong is sent to the hospital. Jing-Wan introduces himself and 4 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.