On the way to the Peaceful Mansion, CHOR and WU find that the Chun Wai Escorts and Luk Fook Escorts are disputing over the lost WHITE JADE GUANYIN. Exposing the truth, YUEN succeeds to reconcile, much to the admiration of CHOR and WU. WU is shocked to find that KO is dressed up as a girl. Before ABBESS FUI MUI, KO denies that she knows WU. Through the arrangement of CHOR and CHUN, KO explains her situation to WU and they are happy together again. Rebuking ABBESS FU MUI for her dominance over the disciples, WU is assaulted by the furious FU MUI. HANG is attacked by the LOONG brothers who take revenge for their father and is saved by WONG. Admiring HANG, WONG requests to be his disciple but is sent to Ching Leung Temple by HANG who claims t6 be heavily engaged in important matters. CHOR and WU perchance run into SIU who insists to accompany them to the Peaceful Mansion and arouses ridicule on the way.