The Beloved Junior Sister Always Thinks She’s the Dragon Overlord

Gongyi Peng is a five-year-old girl living in the Gongyi Manor, one of the four great cultivation families in the Soaring Void Realm. Despite her prestigious lineage, she is an orphan treated as an outcast, forced to scavenge for leftover food in the Immortal Market to survive. Unbeknownst to the world, Peng is not the original owner of this body; she is a transmigrator who retains memories of her past life. A spirit demon named Qiuqiu claims that Peng is the reincarnated Lord of the Nether Capital, a ruler destroyed five hundred years ago by the immortal sects. Qiuqiu believes Peng must join an immortal sect to learn their secrets and eventually lead a revenge campaign to restore the Nether Capital’s glory. However, Peng’s primary motivation is simply survival and securing enough food, and she interprets her destiny through the lens of fantasy novels she has read.

During the Ascension to Immortality Assembly, Peng encounters Ji Shu, a disciple of the Supreme Clarity Capital who is being hunted by assassins. Ji Shu is trapped in a time loop, having died and reincarnated nine times. In each life, his senior brother, driven by twisted jealousy, slaughters Ji Shu’s friends and frames him for forbidden arts, forcing Ji Shu to kill him in self-defense before being sealed away. Exhausted by the endless cycle of bloodshed, Ji Shu attempts to end his tenth life by feigning death in the forest. Peng discovers him and, misunderstanding his condition, drags him back to her dilapidated courtyard, believing she has found a wealthy female protagonist for a live-in son-in-law story. Ji Shu, initially intending to leave once healed, finds himself unable to abandon the orphaned girl, reminding him of his own rootless childhood.

Ji Shu decides to help Peng prepare for the assembly, teaching her marrow cleansing and bone tempering to ensure she can survive in the cultivation world. During the first round of the exam, a written test on philosophical doctrines, Peng cannot read the questions but answers honestly, writing that she does not understand. Her peers, including her cousin Gongyi Lang, misinterpret her speed and confidence as signs of hidden genius. In the second round, a physical ascent involving automaton combat, Peng encounters an Evil Demon threatening other children. Despite her fear, she refuses to flee and attempts to fight using her collection of scavenged "treasures," which are merely broken junk. Her bravery inspires the other children to sing a strange song that strengthens her defense talisman, allowing them to survive until a white-haired swordsman named Yue Wujiu from the mediocre Ninefold Mountain Moon Sect arrives and effortlessly defeats the demon.

The incident draws the attention of the sect elders, who award Peng extra points for her courage. Additionally, a mysterious voice guides Peng to feed the caged Evil Demon, revealing her latent talent for demon taming. Gongyi Lang, convinced that Peng is a hidden master pretending to be foolish, becomes increasingly paranoid about her true strength. Meanwhile, Ji Shu continues to protect Peng from the shadows, using his cultivation to subtly aid her during the competition. As the assembly progresses, Peng’s unique combination of naive confidence, hidden talent, and the accidental activation of her "junk" treasures begins to attract the interest of powerful sects, setting the stage for her unexpected rise in the cultivation world while Ji Shu seeks a way to break his deadly reincarnation cycle.