The American missionary Megan Davis arrives in Shanghai during the Chinese Civil War to marry the missionary Dr. Robert Strife. However, Robert postpones their wedding to rescue some orphans in an orphanage in Chapei section that is burning in the middle of a battlefield. While returning to Shanghai with the children, they are separated in the crowd, Megan faints but is saved by General Yen and brought by train to his palace. Along the days, the General's mistress Mah-Li becomes close to Megan and when she is accused of betrayal for giving classified information to the enemies, Megan asks for her life. The cruel General Yen falls in love for the naive and pure Megan and accepts her request to spare the life of Mah-Li against the will of his financial advisor Jones. Meanwhile Megan feels attracted by the powerful and gentle General Yen, but resists to his flirtation. When Mah-Li betrays General Yen and destroys his empire, Megan realizes that to be able to do good works, one has to have wisdom and decides to stay with him while the General drinks his bitter last tea.
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