The Golden Child is about a young boy with mystical powers known to those as the "Golden Child." The boy demonstrates his powers to a temple of monks by bringing a dead bird to life. The bird becomes a friend of the boy. However, a group of villains led by Sardo Numspa kill the monks and kidnap the boy. In Los Angeles, Kee Nang watches a TV show featuring an interview with a social worker named Chandler Jarrell and his recent case.
Kee tracks down Chandler and informs him of the kidnapping of the "Golden Child." Kee believes that Chandler is the "Chosen One" to save the child. Chandler doesn't believe the story, even after an apparition in the form of the child and his bird begin to follow him.
After a woman from one of Chandler's cases is found dead in an abandoned house, Kee Nang reveals that it was the site where the Child was held. Kee and Chandler are introduced to Doctor Hong. The three find the Yellow Dragons, a local motorcycle gang with ties to Numspa. Chandler later encounters Numspa himself and is asked to bring him the Ajanti Dagger. Numspa promises Chandler to hand over the boy once he received the dagger. Chandler and Kee travel to Tibet to find the dagger. In order to get the blade, Chandler must successfully pass a test by completing an obstacle course in a cavern. He must successfully maneuver the course with a glass of water without spilling it. Chandler succeeds and obtains the blade. He returns to the United States and somehow gets past customs with the dagger intact.
When Numspa and his henchmen attack, Chandler loses the dagger. Kee is shot by a cross bow and dies. Chandler tracks down Numspa at his hideout, killing him with the dagger. The Child with his powers brings Kee back to life with the last ray of sunlight.