The film begins following the British victory of the first Opium War and the seizure of Hong Kong. Although the island is largely uninhabited and the terrain unfriendly, it has a large port that both the British government and various trading companies believe will be useful for the import of merchandise to be traded on mainland China, a highly lucrative market.
When trucker Jack Burton agreed to take his friend, Wang Chi, to pick up his fiancee at the airport, he never expected to get involved in a supernatural battle between good and evil. Wang's fiancee has emerald green eyes, which make her a perfect target for immortal sorcerer Lo Pan—who must marry a girl with green eyes so he can regain his physical form.