The gods in Heaven complain to the Jade Emperor about the malicious practical jokes played on them by Dragon Fighter Lohan. The Emperor summons Dragon, but Tiger Fighter Lohan appears instead to defend his friend. Dragon then appears and rebukes the various gods for their own horrible judgments on mankind, and insists that he can do a better job. The Jade Emperor banishes Dragon and Tiger to be reincarnated as animals, but the Bodhisattva Guan Yin intervenes. Jade Emperor issues Dragon a challenge: if he can change the fates of three people destined to nine incarnations in the same roles—a beggar, a prostitute, and a villain—within three heavenly days, he will not be punished. The Bodhisattva gives Dragon a magical fan to help him in his mission—but Tiger takes the fan away from him moments before he is forced down from heaven.
Dragon is reborn to a couple who visit a Buddhist temple to pray for a child. Tiger enlists the aid of a heavenly soldier named Unicorn to help him take the magical fan to Dragon. When Tiger is reincarnated he is much younger than Dragon has grown. Unicorn uses his magic to make Tiger rapidly age - physically; Tiger's mental abilities remains that of a baby. Dragon's parents adopt Tiger and treat him as their own son.