After a recent amount of challenges, Billy Lo (Bruce Lee) and his friend Chin Ku (Huong Cheng Li) begin to suspect that someone wants them dead. Billy later visits his younger brother Bobby (Tong Lung), who is studying with Billy's former teacher, and leaves him a book on Jeet Kune Do. Chin is soon killed, and Billy goes to Japan to find his stepdaughter, May. May tells him that Chin had visited just before his death, and left a film for her. They are suddenly attacked, but Billy manages to escape with the film.
A few days later Billy attends Chin's funeral, where he is turned away from viewing the body. A helicopter arrives during the burial and steals the coffin away. Trying to prevent the theft, Billy is carried up with the casket but falls to his death. Bobby Lo is told of Billy's death by their father, who tells him to find a man named Sherman Lan and avenge his brother. Sherman gives him the film, which shows Chin Ku at the Palace of Death. The Palace of Death is run by a crazed martial arts expert by the name of Lewis (Roy Horan). Any challenger who fails to defeat Lewis is fed to his pack of lions. Bobby decides to meet Lewis, who is impressed with Bobby's abilities. While investigating the Palace, Bobby is attacked by a masked man. Then, He informs Lewis that someone is trying to kill him. Later that night, a woman is sent to Bobby's room to seduce and assassinate him. When she fails, one of Lewis' lions attacks Bobby. During the fight, the masked man appears and kills Lewis.
Suspecting Lewis' valet, Bobby seeks him out at the Fan Yu temple, where the underground Tower of Death is rumored to be. After defeating the valet, Bobby spies the secret entrance into the tower. Battling his way through the tower he eventually confronts the operator, Chin Ku. Chin is actually the head of a global drug trafficking organization and staged his own death to throw off Interpol investigators. He tried to frame Lewis for his death and arranged for the coffin to be stolen to prevent it from being searched. Realizing the only way to defeat Chin's sword skills is with Billy's Jeet Kune Do. Bobby manages to kill Chin and stop his drug operation.
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