Yang Kun leads men to attack the foreign army but is instead captured and used as a means to demand indemnity. Fortunately, Chin Hsiang wittingly saves Yang. Influenced by Shao-yung, Yang Kun suspects that Chen Hsiang and Annie revive their passion for each other. Yang then challenges Hsiang but after finding that Hsiang purposely gives in, he changes his attitude towards him. Hsiao-hsuan asks Yi Chen to give up taking revenge and stays together with her at Laofoshan. Yi hesitates and at this time he is discovered by Ti Mo who forces him to yield. Hsiao-hsuan outwits Ti and escapes with Yi. The foreigners hold a banquet to celebrate Yi Lu's success in attacking the Ching Court. In order to please them, Ji-shan persuades the Ching officers to join but L in Tse-hsu rejects to turn up. Ji-shan makes excuse that Annie knows the foreign language and so the Yang couple i s forced to join the banquet……