A mysterious Chinese peasant woman one day claims she has seen a UFO, from that day the world turn to upside down. The film is a metaphoric political satire on post-Mao era China.
A Beijing Police officer comes down to Three-headed-bird village to investigate the UFO sighting. Through his point of view, the village's collective portraits are depicted and their tragic destiny unfolds. What kind of future the villager face, what future China heads to?
Simple woman Kwok Yun leads a peasant's life in the peaceful mountains around remote Three-Headed Bird Village. She lives with her grandfather and works as a laborer. She has no dreams of a different life, no great plans for the future.
One day, after a countryside tryst with a married man, Kwok Yun sees a UFO - a giant glowing thing in the shape of a dumpling! Later that same day, she also helps a snake-bitten American businessman, who disappears as mysteriously as the UFO.
The ambitious village leader Chief Chang uses Kwok Yun's unexpected events for political gain. She stimulates tourism with UFO tours and gets the local economy roaring with progress. Busy aspiring to strengthen relations with the USA, she is blind to the dangers such radical change can bring, especially to the environment.
Kwok Yun is also transformed into the shining example of a "model peasant." She is promoted and groomed for a bright new future by pushy Chief Chang. But Kwok Yun's heart is whispering that she's destined for something more than the government's power-hungry plans...