This play is based on the fifth and sixth chapters in the novel Journey to the West.

Racked by remorse, the Dragon King went to the heaven and asked the Jade Emperor to arrest Monkey King. Li Changgeng offered a suggestion, that is, to hoax him to raise horses in Royal Horse Palace. Monkey King, however, discovered the trick, made a scene, and returned to Mount Huaguo, where he established the banner of Great Sage Equalling Heaven.

Li went to Mount Huaguo again and pretended to invite him to a meeting of the Peach Banquet. When Monkey King arrived, he learned from the fairies that he had not been invited to the Peach Banquet. In a fury, he made a scene at Yao Chi and ate many elixirs.

The Jade Emperor sent Erlang God to capture Monkey, who became invulnerable after taking the elixir. So the Jade Emperor sent him to Lord Lao Zi's Bagua Furnace, where he was tormented by fire. The Monkey King, however, jumped out of it.

Under the leadership of Li Tianwang, the emperor concentrated his efforts on fighting the Monkey King. In the end, he was defeated by the witty and brave Monkey King. Surrounded by cheers from the monkeys, Monkey King returned triumphant, singing songs of victory.