The movie starts showing the main character, Li Mu Bai, coming after a long battle somewhere distant. He comes to see his old friend woman that he is in love too. Both don't admit at because it is socially not acceptable.
He gives is warrior sword as a sign to the woman that he want finally to be on her side forever. That woman delivers the sword to a safe place but she shows it to a young ambitious girl that will steal that sword later on.
After a long fight she escapes and Li Mu Bai finally discovers that the girl was learning how to fight with his enemy Jade Fox so now he has two targets.
That same girl is from high society and her parents are social with Li Mu Bai and his friend, so can you see the mess?
One night after Li Mu Bai finds the girl giving back the sword and he says she is not a bad girl and he wants to teach her how to fight!
She refuses.
Then we see a flash back when the girl was lost in the desert and mets the man she fell in love to. To bad she was committed to a man she doesn't love just to please the parents who want to raise their status at the expense of the girl's heart.
She runs away from home and goes to a place called the Giant Hu Underworld where the worst kind of assassins dwell! She fights them and runs away scared because she realizes she is just s sweet young girl that knows nothing about how tough life really is!
Then she is drugged by Jade Fox who was jealous of her because of her sword fighting abilities and Li Mu Bai tries to rescue her, but when he kills Jade Fox, he ends poisoned and dies.
This is a movie I never get tired of and neither should you. It tells me so much about life and people!