San Sheng Mu was a kind and beautiful deity who saved the life of Liu Yan Chang, a mortal scholar. The two fell in love and had a son, Chen Xiang. San Sheng Mu's older brother, Er Lang Shen, found out about their romance and led the Heavenly Brigade in pursuit of the family. During this time of peril, San Sheng Mu gave the Lotus Lantern to Yan Chang to protect him and their son. Soon she was captured and pinned beneath Mount Hua. Thereafter, Yan Chang and Chen Xiang hid in a small village making a meager living. Sixteen years later, Chen Xiang has grown up. One day he discovers that he possesses some mysterious powers, such as the ability to pass through walls. However, these powers begin to attract the attention of Er Lang Shen and Xiao Tian Quan, thus Yan Chang must tell his son the story of their forbidden past. After learning of his mother's imprisonment at the hands of his uncle, Chen Xiang sets out on a journey to rescue her.
The story is based on the traditional Chinese folklore about a boy named Chenxiang. His mother, Shan Mei, was a goddess and his father, Yang Jian, was a mortal. Since their marriage was forbidden, his maternal uncle, Erlang Shen , who was a god, punishes them by killing Yang Jian. Shan Mei escapes and gives birth, but Chenxiang grows up without knowledge of his ancestry. Shan Mei possesses a magical Lotus Lantern whose light can scare away evil. When Erlang Shen, a strict and powerful god, kidnaps Chenxiang, Shan Mei fights to save him.
Unfortunately, Erlang Shen is victorious and Chenxiang is forced to live in his palace on the sacred mountains. Erlang Shen then imprisons Shan Mei beneath a mountain for her crimes. Although he is quite young, Chenxiang manages to escape from the palace, taking the magical lotus lantern that Shan Mei lost during the battle.
After surviving adventures with many beloved characters of Chinese mythology, Chenxiang finally matures into a courageous boy who must battle Erlang Shen to win Shan Mei's freedom and fall in love at the same time.