During the Southern Sung Dynasty, humans and spirits inhabit a world where it is difficult to tell them apart. Because both humans and spirits aspire to elevate themselves spiritually, and when the spirits have trained for a long period, they can assume human forms and have great magical powers. A self-righteous monk by the name of Faat -Hoi (Chui Man) sets out on a mission to rid the community of evil spirits to ensure harmony in the world. One night, when Fa-Hai is battling the spider spirit (Tin Fung), they disturb two snake spirits, played by gorgeous Asian Babes (Joey Wong) as White snake and Maggie Cheung as the titles name sake Green Snake, who are meditating at the bottom of the West Lake. He decides that they are harmless spirits and lets them on there way unbeknown that they have evil tendencies and a burning desire to taste carnal knowledge with a human a form and will go to any lengths to fore fill there lust.