After being defeated by Ip Man, Cheung Tin Chi (Max Zhang) lives a depressed life and stays low profile, moonlighting as a mercenary briefly, before choosing to leave behind the world of martial arts. Tin Chi refuses to accept even good assignments where he gets paid twice his usual fee to eliminate the bad people. Tim Chi says that he wants to be an ordinary person for the sake of his son, as there is no danger. Tin Chi has opened a grocery store on the ground floor of his house. It is Tin Chi's birthday, and he has promised to take him to a steakhouse in the evening. While on a delivery run, he runs into the opium addict Nana (Chrissie Chau). Nana is in debt to Tso Sai Kit (Kevin Cheng). Kit was demanding payment on Nana's outstanding debt and threatened to sell her into prostitution to recover his dues. Julia (Liu Yan) is Nana's friend pays the money to Kit, but he says that it only covers the principal and not the interest. The girls realize that Kit has no intention of freeing Nana and try to run away. Tin Chi was passing through the market where Kit's men were chasing Nana and Julia and ends up fighting with Kit's gang and defeats the whole gang all by himself. The Royal Hong Kong Police Force arrive and arrest everyone. Kit and his gang are released after bribing a corrupt senior police officer (Brian Thomas Burrell). Nana and Julia are released by name-dropping Julia's brother, Fu (Xing Yu), the owner of Gold Bar operating on Bar Street. Tin-chi is eventually released late at night and takes his son Cheung Fung (Henry Zhang) to a steakhouse called Petrus for his birthday. Unfortunately, the steakhouse is closed, and all their chefs have gone home for the night and Cheung Fung is disappointed. Kit's sister, Kwan (Michelle Yeoh), the head of the syndicate who wishes to transition to legal businesses (which Kit opposes). Kwan says that going legitimate will make sure that they never end up behind bars, but also acknowledges that going legitimate might not be as profitable as running their illegal businesses. Kit wants the syndicate to use its clout to expand the business & buy out the law enforcement. But the board of directors vote with Kwan and Kit is frustrated. Following the incident, Kit decides to seek out Tin Chi, with his whole gang setting his shop house on fire one night. They also locked the gates of his shop with chains on the outside, so there is no route for Tin Chi to get out of the inferno. Tin Chi barely escapes alive with his son, while being pursued by the gang and Sadi (Tony Jaa), a hired assassin. On the way, he encounters Julia, who takes Cheung Fung from Tin Chi, allowing him to face the pursuers. Tin Chi defeats Kit's men, but Sadi was his toughest opponent yet. Sadi and Tin Chi are equally matched and trade blows, but Sadi opts to withdraw from the fight when Julia intervenes and tells Tin Chi that Cheung Fung has fainted from the smoke inhalation and needs medical attention. Tin Chi is offered shelter at Fu's home by Julia and works at Gold Bar to pay his rental. The police pass off the incident as an accidental fire as once again the senior police officer is bribed by Kit. Angered by the injuries to his son, Tin Chi retaliates and sets Kit's opium den on fire. At the bar, Tin Chi struggles to adapt to his new life. The bar is frequented by British officers, who mistreat and insult their Chinese waiters and bartenders. It is only Fu who manages to keep Tin Chi on a leash. Kwan prevents Kit from taking revenge and visits Tin-chi at Gold Bar to compensate him for all damages Kit caused and for Tin-chi to drop the matter. Tin-chi refuses the money, impressing Kwan. At the same time, Tin-chi forges an increasingly close friendship with Fu over their shared pasts in martial arts. Kit, attempting to escape from the shadows of Kwan, decides to move into drug dealing with his friend, peddling drugs on Bar Street for Davidson (Dave Bautista), who uses his restaurant as a front for his drug business. Tin Chi tips off Kwan about the business, who requests for time to settle the business. Davison is the president of the local Merchants association and Kwan had applied for membership to legitimize her businesses. But Davidson turned her down, saying that the Merchant association is a consensus organization, and her dirty money is not welcome. After finding Nana in a back alley, Kit and his gang kill Nana by forcing her to overdose on cocaine. Tin Chi and Fu fight their way to the syndicate's headquarters, where they fight with Kit and Kwan (Kwan is trying to protect Kit, but when Kit tries to fire a gun, she realizes that Kit is wrong). Kwan, attempting to placate them, cuts off Kit's right arm and forces him to reveal where he stores his heroin. Fu then exposes the drugs to the media. In return, Davidson has corrupt police officers set up Fu on a false drug charge. After arresting him, they hand Fu over to Davidson to be killed in an unfair fight. Subsequently, following the discovery that Davidson murdered Fu, Tin Chi gets himself into a fight with Davidson, in which he regains his confidence in using Wing Chun for good. The senior police officer arrives to arrest Tin-chi despite Tin-Chi's testimony that the heroin belongs to Davidson The police commissioner attempts to arrest Tin Chi but is in turn arrested by his lieutenant Fai (Philip Keung) for corruption. Davidson attempts to escape in the ensuing chaos, but is assassinated by Sadi, who had been hired by Kwan before leaving Hong Kong with Kit. Tin-Chi returns to Julia's apartment and reunites with his son. The three of them share a meal together. In a mid-credits scene, Fung uses Wing Chun to defeat the boy who bullied him earlier.
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