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At the end of the previous issue, Peter Parker walked into his apartment to find a mysterious person there. We find out that it's Betty Brant, back from her Paris honeymoon. Betty says that she's actually left Ned still in Paris, since he would go out on assignments and leave her alone. She also implies that she wants Peter and her to get involved again, as they had years earlier, but Peter makes excuses and leaves for graduation practice.

Whilst Peter is traveling to graduation practice, J. Jonah Jameson visits a laboratory, where he's told by a doctor that his son can't be cured and will have to remain in a cryogenic chamber forever. Jonah refuses to believe this, and storms out, furious with the doctor. When Peter arrives at his graduation practice, he is persuaded by Betty Brant to go talk to Phillip Chang, a fellow student at Empire State University. Phillip almost attacks Peter, mistaking him for someone he calls a "Dragon", but apologises when he realises who it is. Phillip then leaves, and Peter decides to follow him as Spider-Man.

Whilst looking for Phillip in Chinatown, Spider-Man encounters a fight in a store. He stops the men causing the fighting, who call themselves dragons, but when he gives the phone to the owner of the store to call the police, the owner hangs up the phone. Spider-Man then changes to Peter Parker, and goes and meets Betty Brant for dinner. However, their waiter turns out to be none other than Phillip Chang.

When Peter questions Phillip as to why he's acted so strangely, Phillip explains that he had to leave Japan because his life was in danger there. He's about to explain more, when a costumed man calling himself the White Dragon arrives, and drugs Phillip with gas from his mask. The White Dragon then leaves with Phillip's unconscious body, but Peter throws a spider tracer which sticks to him.

Peter then takes Betty Brant to a taxi, and changes to Spider-Man so that he can find the White Dragon. After some searching, Spider-Man finds a factory where the White Dragon has Phillip tied up. The White Dragon also has four men around, and is telling Phillip that he has to choose one of the gangs, although Phillip says he can't. Spider-Man then starts tackling the gang leaders, and whilst he manages to take them out, the White Dragon manages to slash at him with some claws, which are drugged. Spider-Man awakens to find himself in chains, above a vat of oil. The White Dragon offers Phillip one more chance to join one of the Dragon gangs, but when he once more refuses, the White Dragon drops Spider-Man into the oil, and lights it on fire.

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