本片改编自蒲松龄的《聊斋志异》。明代书生顾省斋靠卖字 鬻画维生，放弃科举功名，而以诸葛亮的“苟全性命于乱世，不求闻达于诸侯”来自明心志。顾家旁传闻闹鬼的靖虏屯堡中，躲居着一对逃难母女。顾省斋与女主角杨慧贞有了一夜情缘以后，发现杨女为朝廷重臣杨涟之后，顾生以智巧机关和鬼神传言，协助杨女击溃夜间来袭的人马。翌日乍见遍地尸野而杨慧贞已离他而去，顾省斋为了情缘循迹追寻，杨女避见而托僧人交付新生婴儿，本身决定遁入空门 ，法师以其俗缘未尽，嘱其和同伙石将军下山营救顾生父子，与东厂杀手难分胜负的交锋对决，幸因法师前来相助而让恶人伏法，但法师本身也因此牺牲圆寂入圣。

The film is adapted from Strange Stories from a Chinese Studio. Gu is an intellectual who paints and writes for living, having no interest in taking the imperial examination and fame, like Geliang Zhu said "I merely managed to survive in times of turbulence and had no intention of seeking fame and position from princes." He and his mother live by a deserted mansion, which is rumored haunted. One day a woman, Yang, and her mother, who are refugees, are found hiding in the mansion. Yang's father is a loyal official and killed by the evil eunuch of East Chamber. Yang and other loyal generals are chased by the guards sent by East Chamber. Then the guards attack the mansion and Gu designs traps and uses the haunted rumor to scare off the enemy, along with Yang’s fighting. Gu and Yang falls for each other before the attack. After the carnage, Yang leaves Gu and gives birth of their child, then gives it to Gu. Yang then follows her master, Huiyuan, the monk, to be a nun. The guards re-appear and have fierce fights with the righteous ones, Yang is badly injured. Master Huiyuan appears and teaches the guards lessons. In the end, he is injured by the scheming enemy, yet he struggles to kill the evil guy and dies.