A young father and his infant son are beset by forces of evil and corruption. They wander China, upholding their sense of honor and protecting the weak. When they are forced into combat, spectacular and hilarious fast-motion kung fu sequences follow. In the end, they must call on all of their abilities in a battle royale, to attempt to vanquish a supernatural man-monster or die trying.

A dying teacher instructs his final student to check on the activities of five former pupils, each of whom he taught a unique and special style of kung-fu to: The Centipede, Snake, Scorpion, Lizard, and Toad (hence the title). His final student, who knows a little of each style must team up with one of the other good students to destroy the evil ones if there are any. Greed and treachery ensue as the student discovers that some of the students are indeed evil. But which one can he trust enough to team up with?

The one-armed boxer is stalked by a vengeful flying guillotine expert, after his disciples were killed in the first 'One-Armed Boxer' film...