A young girl plays by the river and was frightened by her father in the river pretending to be a fish demon. The young girl cries and the father tries to please her by doing water ballet. The father is killed by a real fish demon. The villagers quickly become afraid of the river and then they hired a Taoist to avenge the death of the villager. The Taoist mistakes a stingray for the demon, but announced that the village was safe. A demon hunter, Tang Sanzang (Wen Zhang) informs the Taoist that he is wrong, and that the demon is still in the water. After the Taoist pushes his reluctant disciple into the lake to prove that the demon is gone, the demon strikes again. Sanzang tries to save everybody, and eventually the village kills the demon. The demon is transformed back to his human form. Sanzang sings “300 Nursery Rhymes” to the demon, trying to convert the demon to good. He does not succeed and the demon starts to attack Sanzang.