The novel is set in the late Ming dynasty. The protagonist, Yuan Chengzhi, is the son of Yuan Chonghuan, a patriotic military general who was wrongly put to death by the Chongzhen Emperor. The orphaned Yuan was brought to the Mount Hua Sect, where he was tutored in martial arts by Mu Renqing. After he grows up to become a fine young martial artist, he leaves Mount Hua in search of adventure. Serendipitous incidents lead him to discover the Golden Serpent Sword (or a Keris like sword.) and a martial arts manual, which once belonged to Xia Xueyi, a long-dead enigmatic swordsman. Yuan inherits Xia's possessions and skills and becomes a powerful swordsman.