Lu Dongbin, one of the Eight Immortals, disguises himself as a man selling tangyuan at the Broken Bridge near the West Lake in Hangzhou. A boy named Xu Xian buys some tangyuan from Lu Dongbin without knowing that they are actually immortality pills. After eating them, Xu Xian does not feel hungry for the next three days. He therefore goes back to the old man to ask him why. Lu Dongbin laughs. He carries Xu Xian to the bridge where he then flips him upside down and causes him to vomit the tangyuan into the lake.
Swimming in the lake is a white snake spirit who has been practicing magical arts for centuries in the hope of becoming an immortal. She eats the pills and gains 500 years’ worth of magical powers. She feels grateful to Xu Xian and, from that moment on, their fates become intertwined. There is also a tortoise spirit training in the lake who did not manage to consume any of the pills. He becomes very jealous of the white snake.
One day, the white snake sees a beggar on the bridge who has caught a green snake to wants to dig out the snake’s gall and sell it. The white snake transforms into a woman and buys the green snake from the beggar, thus saving the green snake’s life. Grateful, the green snake regards the white snake as an elder sister.
Eighteen years later, during the Qingming Festival, the white and green snakes transform themselves into two young women called Bai Suzhen and Xiaoqing respectively. They meet Xu Xian at the Broken Bridge in Hangzhou. Xu Xian lends them his umbrella because it is raining. Xu Xian and Bai Suzhen fall in love and are eventually married. They move to Zhenjiang, where they open a medicine shop.
In the meantime, the tortoise spirit has accumulated enough powers to take human form, so he transforms into a Buddhist monk called Fahai. Still angry with Bai Suzhen, Fahai plots to break up her relationship with Xu Xian. He approaches Xu Xian and tells him that during the Duanwu Festival his wife should drink realgar wine. As realgar wine is associated with the Duanwu Festival , Xu Xian give the wine to Bai Suzhen who unsuspectingly drinks it and reveals her true form as a large white snake. After seeing that his wife is not human, Xu Xian dies of shock. Bai Suzhen and Xiaoqing travel to Mount Emei, where they brave danger to steal a magical herb that restores Xu Xian to life.
After coming back to life, Xu Xian still maintains his love for Bai Suzhen despite knowing her true nature. Fahai tries to separate them again by capturing Xu Xian and imprisoning him in Jinshan Temple. Bai Suzhen and Xiaoqing fights Fahai to rescue Xu Xian. Bai Suzhen uses her powers to flood the temple. However, despite drowning many innocent people, she fails to save her husband. Xu Xian later manages to escape from Jinshan Temple and reunite with his wife in Hangzhou, where Bai Suzhen gives birth to their son, Xu Mengjiao. Fahai tracks them down again, defeats Bai Suzhen and imprisons her in Leifeng Pagoda. Xiaoqing flees, vowing vengeance.
Twenty years later, Xu Mengjiao earns the zhuangyuan (top scholar) degree in the imperial examination and returns home to visit his parents. At the same time Xiaoqing, who had spent years refining her powers, goes to Jinshan Temple to confront Fahai and defeats him. Bai Suzhen is freed from Leifeng Pagoda and reunited with her husband and son, while Fahai flees and hides inside the stomach of a crab. However, instead of being reunited with her husband and son, Bai Suzhen attained immortality and ascended to the heavens.
Madam White Snake is commonly interpreted as a reflection of the tension between social norms and individual desires. Xu Xian and Bai Suzhen’s love affair was one that did not conform to social norms at the time and Fahai represents the force that attempts to uphold social hierarchy and maintain social norms. Fahai’s attempts and eventual success in separating them implies the priority of society over individuals. A contrast is provided in the story by Bai Suzhen’s son who emerged as the top scholar in the imperial exams. He represents individuals who are rewarded when they confirm to social norms. As a result, Bai Suzhen was rewarded through her release from the Lei Feng pagoda but the social norms continued to prevail – she was rewarded with immortality but remain separated from her husband and son.