A Chaos Pearl, birthed from the primordial essences of heaven and earth, begins siphoning energies gluttonously. The Supreme Lord
Yuanshi Tianzun dispatches his disciples
Taiyi Zhenren and
Shen Gongbao to subdue the sentient pearl, but they are unable to due to its ability to absorb energy. Using the Seven-Colored Sacred Lotus, Tianzun separates the pearl into two opposite components: the Spirit Pearl and the Demon Orb. He then places a heavenly curse of lightning upon the Demon Orb that will destroy it in three years time, and instructs Taiyi to take the Spirit Pearl to be reincarnated as the third son of
Li Jing in the town of Chentang Pass; the son will be named
Ne Zha. Motivated by jealousy, Shen steals the Spirit Pearl and causes Li Jing's pregnant wife
Lady Yin to give birth to Ne Zha as the reincarnation of the Demon Orb. Taiyi tells them that Ne Zha's fate is sealed: in three years' time the heavenly curse placed upon the Demonic Orb will kill him, so Li travels to Heaven with Taiyi in an attempt to plead for Ne Zha's life, but is told the curse is irremovable. Meanwhile, Shen brings the stolen Spirit Pearl to the
Dragon King of the
East Sea. The Dragon King infuses the Spirit Pearl into an egg, giving birth to his third son
Ao Bing whom the Dragon King allows Shen to take as a disciple. The dragons resent how they are confined to the ocean floor by the Heavenly Court, and hope that because Ao Bing is born from the Spirit Pearl, they will be allowed to leave. To tame his demonic nature and make him happy, Ne Zha's parents lie to him, telling him he was born of the Spirit Pearl and is destined to be a great demon hunter, while enlisting two boundary beasts to keep him from leaving their property. Ne Zha studies under Taiyi and acquires great skills, but is still not allowed to hunt demons. Becoming impatient, he escapes his confines to hunt demons on his own. While chasing an aquatic
yaksha trying to devour a little girl, Ne Zha burns down a fishing village. Ao Bing joins Ne Zha's fight but is petrified by the yaksha. Ne Zha cleverly defeats the yaksha and rescues both Ao Bing and the little girl, and he and Ao Bing become friends. However, his actions are misunderstood by the townsfolk of the destroyed village, who attack Ne Zha until Ne Zha's parents and Tai Yi arrive to stop the fight. After Li learns it was all just a misunderstanding, he plans to prove Ne Zha's innocence on his upcoming birthday party. Ten days later, the Li household organizes a lavish birthday party for their son, inviting the townsfolk to attend while the boundary beasts keep an eye on the captive yaksha. Shen visits Ne Zha before the party and reveals the truth of Ne Zha's nature to him. Furious at his parents' deception, Ne Zha unleashes his true demonic form and nearly kills his father until Ao Bing intervenes. Feeling betrayed, Ne Zha leaves to await his fate. While thanking Ao Bing, Li discovers he is a dragon and the reincarnation of the Spirit Pearl. Knowing that if this is revealed, all of dragon kind will be condemned forever, Ao Bing acts on Shen's command, creating a massive sheet of ice above the town, intending to bury the town and eliminate all witnesses. Meanwhile, Ne Zha learns that when his father visited Heaven to plead for his life, he accepted an enchantment that would allow him to trade his life for Ne Zha's. Moved by his father's sacrifice, Ne Zha returns to the village to stop Ao Bing. Unleashing his full demonic form, Ne Zha defeats Ao Bing, but spares his life for being his only friend. When the heavenly lightning approaches, Ne Zha surrenders to his fate but is unexpectedly joined by Ao Bing. Linking hands, they unleash the Chaos Pearl's ability to absorb energy. Their mortal bodies cannot withstand the full energy of the strike and are destroyed, but with Taiyi's help, they survive as spirits. The citizens of Chentang Pass approach and kneel in gratitude to the two for saving them. In the
mid-credits scene, the Dragon King vows vengeance on Chentang Pass for what happened to Ao Bing. The other three Dragon Kings of the
Four Seas appear and use this as an opportunity to make a deal with him. Meanwhile, in an unknown location, a sneak peek of the movie
Jiang Ziya is introduced. == Voice cast ==