The workers of a dye factory have their pay cut by 20% when the factory owner brings in some Manchu thugs to try and increase production. Desperate to reclaim their full wages, the workers hire an actor to impersonate a priest and kung-fu expert from the temple of Shaolin. The factory owner proves the actor a fraud, and punishes all those involved. The young actor feels he has let the workers down, and promises to atone. He sets out for Shaolin, determined to be accepted as a kung-fu pupil at the elite temple.

Iron Monkey is a Hong Kong variation of Robin Hood. Corrupt officials of a Chinese village are robbed by a masked bandit known as “Iron Monkey”, named after a benevolent deity. When all else fails, the Governor forces a traveling physician into finding the bandit. The arrival of an evil Shaolin monk, brings the physician and Iron Monkey together to battle the corrupt government.