From a chaotic primordial pearl,
two forces emerge: the Spirit Pearl and the Demon Orb.
Lord Yuanshi Tianzun curses the Demon Orb with destruction in three years.
The Spirit Pearl is meant for Li Jing’s son, Ne Zha, but Shen Gongbao steals it, giving it to the Dragon King’s son, Ao Bing.
Ne Zha is born with the Demon Orb, destined for death. To protect him, his parents hide his fate, telling him he’s the Spirit Pearl’s reincarnation and a demon hunter. Ne Zha and Ao Bing become friends, but Ne Zha’s demonic nature leads to conflict with the villagers.
Shen reveals Ne Zha’s true nature, and Ao Bing, under Shen’s orders, attempts to freeze the village. Li Jing sacrifices himself to save Ne Zha. Moved, Ne Zha confronts Ao Bing, sparing him. As the heavenly lightning strikes, both Ne Zha and Ao Bing combine their powers, absorbing the energy. Though their bodies are destroyed, Taiyi saves their spirits, and the villagers show them respect.
In the post-credits, the Dragon King vows revenge, and Jiang Ziya is introduced, hinting at a future conflict.