YIP PING recovers from her ageing disease with the medicine from PAKLUNG and CHI TSING. YIP then summons her people to pursue her aunt CHING FA and TIT CHU.The werewolf appears and attacks the mother and son. TIT CHU is poisonedand becomes a werewolf at full moons. LING SIU knights PAK LUNG, and sends-him to seek for the Leo-stone withPING. Out of jealousy, PING accuses CHI TSING an evil agent comingfrom the notorious Haunted Valley. CHI TSING leaves the castle in great anger. Back in the Haunted Valley, CHI TSING is forced by the master to producethe youth potion. TSING FA comes to the Haunted Valley to seek help from the couple who are medical experts.