Jingtian is a servant in the biggest jewelry store in the town of Yuzhou. He can judge jewels very well and has an eye for beautiful things. He also has an extraordinary memory and a talent for sword-fighting, so he hopes to become one day the most skillful swordsman and the richest person in China. Naturally, the young man is also interested in beautiful girls, particularly in Xuejian, the daughter of Tang Kun, the boss of the store he works in. Xuejian is not only beautiful - she has knowledge of culture, kung-fu, and medicine. Lately, Tang Kun became sick, and there is a family struggle for his heritage. Willing to protect Xuejian, Jingtian becomes involved in a net of conflicts, and realizes the time to find a use for his talents as a swordsman has finally come.

Xianjian Qixia Zhuan 3 is the third installment in the Chinese role-playing series; it begins a new story arc which is not directly connected to the one of the two previous games. It is also the first game in the series that utilizes a fully 3D engine. The camera can be rotated 180 degrees, and the isometric perspective is abandoned in favor of 3D third-person one. The battles also take place in a fully 3D environment.

Battle engine has undergone several refinements, including two different energy types for special techniques as well as a bar that shows the progression of turns and the exact time a player-controlled character or an enemy needs to execute an attack. Magic spells initially take longer time to cast; this can be countered by improving a character's proficiency in casting corresponding magic. By focusing on one elemental discipline, the character will also be able to gain access to more powerful spells.

True to the tradition of the series, the enemies are visible on screen, and battles are triggered when there is contact between the protagonist and the enemy. A few character-specific field techniques have been added, which are sometimes needed to remove an obstacle during dungeon exploration. A light dating element has been added: Jingtian can talk to his female party members in towns, and influence his relationship with them depending on the player's choices.

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