Ryu and Ken arrive in Hong Kong. They also like to tour the city via helicopter. Their tour guide is 15 year old Chun-Li. As Chun-Li guides Ryu and Ken through Hong Kong, they are interested in the dark area known as Kowloon Palace, which is a breeding ground for street fighters. Ryu competes and wins several fights, including the best fighter in the palace, Damnd. Before Ryu, Ken and Chun-Li knew it they were running for their lives.