In late Qing dynasty China, Huo Yuanjia becomes obsessed with martial arts after experiencing humiliation as a child due to his father's refusal to allow him to participate in a fighting tournament. Ignoring his father's advice that martial arts are meant to promote health and Buddha's way, his zeal leads to reckless behavior. He tirelessly trains himself and eventually rises to become the most respected fighter in Tianjin, founding a martial arts school to rival the best. However, his unchecked pride and need for validation propel him into a tragic oversight, resulting in personal despair and a public outcry against him. In his journey for redemption, he realizes the true essence of martial arts and becomes a symbol of national pride by challenging foreign fighters, who disparage Chinese martial arts and insult the Chinese people's national pride.

Embarking on a self-imposed exile, he discovers the value of humility and the importance of being grounded. Through interactions with the rural folk, he learns about the broader implications of his actions and begins to understand the deeper philosophy behind martial arts - one that emphasizes peace, resilience, and the connection to the land and its people. Resolving to make amends and restore his honor and the dignity of his country, he returns to the arena, not for personal glory but to stand up for his countrymen against foreign oppression and to promote a message of peace and unity through the dignified discipline of martial arts.