In legendary Chen Village, everyone is a martial arts master, using their powerful Chen Style Tai Chi in all aspects of their lives. Lu Chan has arrived to train, but the villagers are forbidden to teach Chen Style to outsiders, and do their best to discourage him by challenging him to a series of fights. Everyone, from strong men to young children, defeats him using their Tai Chi moves. But when a man from the village's past returns with a frightening steam-powered machine and plans to build a railroad through the village at any costs, the villagers realize they may have no choice but to put their faith in Lu Chan... who has a secret power of his own.