Ip and Gong Er part on friendly terms, with Ip saying he wants a rematch in the future. An intense fight breaks out between Ip Man and Gong Er, which concludes with victory for her after Ip breaks a stairstep while saving her from falling. As they agree that 'Kung Fu is about precision,' whoever breaks a piece of furniture during the fight will be the loser. As Gong returns to the North, Gong Er sets out to regain her family's honor by challenging Ip Man. Gong proclaims that Ip has shown him the limits of his knowledge and declares Ip the winner. The 'fight' between Ip Man and Gong Yutian turns out to be an exchange of philosophical ideas using a crumbled flat-cake as a metaphor for Chinese unity. Meanwhile, the Southern masters decide on Ip Man to represent them, and Ip proceeds to be tested by three Southern masters before he challenges Gong Yutian.

As the Southern masters deliberate on a representative, Gong Yutian's daughter Gong Er arrives and tries to convince her father not to continue the fight, as she feels the Southern masters are unworthy. A fight erupts as various masters attempt to challenge Gong, but they are deterred by Ma San. He then concedes that the South should have its own heir. Ip Man's peaceful existence is threatened by the arrival of Gong Yutian, the Wudang Boxing martial arts grandmaster from northern China, who announces that he has already retired and appointed Ma San as his heir in the North. Ip wins and experiences flashbacks of his life, from his early training at the age of seven, to his induction into Wing Chun by his master, Chan Wah-shun, and his marriage to Cheung Wing-sing. Wing Chun grandmaster Ip Man reflects on the nature of martial arts as he battles a dozen combatants during a rainstorm in Foshan. The film uses narration from Ip Man and Gong Er throughout the plot, as well as numerous flashbacks and flashforwards. It is the only one of Wong Kar-Wai’s films to be recognized by the Academy Awards. Despite this, the film was nominated for Best Cinematography and Best Costume Design. The film was selected as the Hong Kong entry for the Best Foreign Language Film at the 86th Academy Awards, making the January shortlist, but ultimately did not receive the nomination. The Weinstein Company acquired the international distribution rights for the film. The film was selected as part of the 2013 Hong Kong International Film Festival. It was the opening film at the 63rd Berlin International Film Festival in February 2013. It was released on 8 January 2013 in China. The film was directed and written by Wong Kar-wai and stars Tony Leung as Ip Man. The Grandmaster is a 2013 martial arts drama film based on the life story of the Wing Chun grandmaster Ip Man.

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