청사
A storm takes place while Fat-hoi goes into the forest and he attacks two Snake spirits. But after he noticed that they were only preventing rain from hitting a woman giving birth, he releases them. Again, he is haunted by sins of the human mind, primarily the female body. The two snakes, White Snake (Joey Wong) and Green Snake (Maggie Cheung), are later seen on the rooftop of a festival where Green Snake participates while White Snake eyes a local scholar Hsui Xien (Wu Hsing-Kuo). The two have been training for many centuries to take human form and experience the love, freedom and wisdom that is supposedly only available to humans. White Snake is the more experienced one and proceeds to get engaged to Hsui Xien, with whom she plans to have a child which would complete her passage into the mortal realm; Green Snake is the younger and more impulsive of the two sisters but she is not yet quite convinced of the benefits of the human world. They both move into their magically created house and start a successful medical practice in the town. Other than Hsui Xien's visit, the two gets another visit unexpectedly from a buffoonish Taoist whom Green Snake leaves the household to take care of. Because of White Snake's beautiful charms, Hsui Xien, once known as the toughest and most dedicated scholar of the village, is starting to lose his reputation.