When a retired Army General is too old to respond to an order to help quell a rebel uprising, his main concern is the shame it will bring on his family. His young daughter, Mu Lan, is aware of her fathers concern, and disguises herself as a male and enlists in the Army. A student of Kung Fu who trained for many years under her mentor, the mystical Zi Hoi, Mu Lan possesses superior fighting skills and resourcefulness.

During the early days of the war, Mu Lan meets another young enlisted soldier, Liu, and they become close friends. The war lasts many years and Mu Lan, who successfully maintains her disguise, becomes Commander-in-Chief, earning the respect and loyalty of her troops who she leads to a brilliant victory. When it is time for Mu Lan and Liu to farewell each other, Mu Lan reveals her secret.