The book is broken up into 3 sections, "The Protecting Ancestors", "The Great Sky Lantern" and "The Bringer of Good News". Each section contains linked stories.
In the first, Kai Lung's village has been pillaged by the evil Ming Shu, and not only have his house and garden been destroyed, his wife has also been taken away. It is left to the story-teller's wits to think of a plan to defeat Ming Shu, and reclaim his property.
In the second part, Kai Lung overhears a neighbor using an improper analogy, and decides to educate him by providing an example of a properly composed piece of prose.
In the third part, Kai Lung receives the distinction of being allowed to practise his craft before any official within three and a half li of his residence, provided that official is not engaged in important business at the time, and is authorized to style himself as "Literary Instructor to the Shades of Female Ancestors". He then finds a suitable occasion to launch into one of his narratives.