After learning about Duan Zhixing, Guo Jing and Huang Rong embark on a journey to find him. They eventually reach a temple where Duan is residing as a monk. Initially hesitant to help Huang Rong due to his vow of celibacy and non-involvement in worldly affairs, Duan eventually agrees to help after being moved by Guo Jing's sincerity and loyalty.
Duan teaches Guo Jing a special martial arts technique called "The Divine Skill of the Heavenly Sabre", which Guo uses to defeat a group of bandits who were attacking the temple. With Huang Rong's condition deteriorating, Duan takes them to a rare herb garden that can heal her. However, they are ambushed by Qiu Qianren and the Iron Palm Sect, who have been tracking them.
In the ensuing battle, Guo Jing fights Qiu and is able to defeat him with the help of his new martial arts technique. However, Huang Rong's condition worsens and she falls into a coma. Guo Jing seeks Duan's help once again and learns of a legendary healing technique that can cure any illness but requires a great sacrifice. Duan decides to use the technique to save Huang Rong's life and sacrifices his own life in the process, passing on the leadership of the Dali Kingdom to Guo Jing.
The film ends with Guo Jing, now the ruler of Dali, bidding farewell to Yinggu and setting off on a new adventure with Huang Rong by his side.