During the fall of the Chin Dynasty, ca 200BC, China was torn by struggles among powerful warlords. This opera described the eventual elimination of Xiang Yu by Liu Bong, the two rivals, thus establishing the Han Dynasty.

Xiang Yu, head of Chu Kingdom, was known of his outstanding bravery and undefeatable audacity. He however lacked judgment and military strategic wisdom and could be easily influenced by flattery. Realizing the weakness of Xiang, Liu Bong of the Han Kingdom, sent his loyal minister Li Tso Cheh, pretending to be a defector in order to infiltrate Xiang's court to gain his trust. Li succeeded in persuading Xiang to mobilize his entire army against Liu and Chiu Li mountain, where Liu Bong had set a trap for Xiang. Xiang, swayed by Li's and his own ambitious desire to conquer the Han Kingdom, took Li's advice in spite of the objection of his own loyal advisers, and marched onto the Chiu Li mountain.

Yu Ji, Xiang's favorite concubine, accompanied him to the battle. At the battleground, Liu's ministers trained their solders to sing like the Chu folks, a song of battle fatigue and homesickness and spread rumors of defeat. As a result, the Chu army thinking that they were losing the battle fled in desertion. Xiang, realizing his impending tragic ending, lost all courage. Yu Ji decided to enliven Xiang's spirit with songs and dance. Finally, realizing that she had become a deterrent of his courage, committed suicide, so that he would go back to battle.