Lee, a highly proficient martial artist and instructor from Hong Kong, is approached by Braithwaite, a British intelligence agent investigating a suspected crime lord named Han. Lee is persuaded to attend a high-profile martial arts tournament on Han's private island to gather evidence that will prove Han's involvement in drug trafficking and prostitution. Shortly before his departure, Lee also learns that the man responsible for his sister's death, O'Hara, is working as Han's bodyguard on the island. Also fighting in the competition are Roper, an indebted gambling addict, and fellow Vietnam War veteran Williams.

At the end of the first day, Han gives strict orders to the competitors not to leave their rooms. Lee makes contact with covert operative Mei Ling and sneaks into Han's underground compound, looking for evidence. He is discovered by several guards, but manages to escape. The next morning, Han orders his giant enforcer Bolo to kill the guards in public for failing in their duties. After the execution, the competition resumes with Lee facing O'Hara. Lee beats O'Hara in humiliating fashion, then kills him after he attacks Lee with a pair of broken bottles. Han abruptly ends the day's competition after stating that O'Hara's treachery has disgraced them. Han confronts Williams, who had also left his room the previous night to exercise.

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