Song Dynasty monk Ji Gong is deified in Chinese legends as an eccentric folk hero who used his powers to help the poor and protect the weak from injustice during. Oft imagined in film and television, the legendary figure has been portrayed by many actors over the years, including Leung Sing Bor, Sun Ma Sze Tsang, You Benchang, Karl Maka and Stephen Chow in The Mad Monk. The most well-known onscreen Ji Gong in recent years is Hong Kong actor Benny Chan, who played the character in five television seasons in China from 2010 to 2015. The television star continues to embrace his signature role in The Incredible Monk film series. The third installment of the costume fantasy comedy is again written and directed by funnyman Lam Tze Chung.

Eighteen years ago, Xiao Die's birth indirectly led to a fire in her village and the death of her father. Up in heaven, the deities determine that she is fated to bring great catastrophe. To stem disaster, they send a messenger to take her life. When Ji Gong learns of this, he uses his powers to cast a protective seal over Xiao Die so that she has the chance to grow up and change. Eighteen years later, Ji Gong meets with Xiao Die again to either redeem or destroy her. He discovers that the grudge-bearing souls of Xiao Die's past lives reside within her and tries to draw them out. However, one soul remains, a once-in-a-century incarnation destined to bring catastrophe to the mortal world.