Ryu, Ken, and Chun Li fight their way through Kowloon Palace, defeating all the foes they encounter. They reach the exit of Kowloon Palace, only to be stopped by the evil Lean. He orders his two strongest bodyguards to prevent Ryu and Ken from leaving the place. The boys defeat both, but find Chun Li now held in hostage by Lean. Chun Li's father Dorai, who is the police chief of Hong Kong, enters the scene with some other policeman. Dorai unfits Lean for fighting by a shot in the hand and saves Ryu and Ken from being shot. Dorai accompanies Chun Li, Ryu and Ken to the hotel and tells his daughter not to act this foolish again. Chun Li informs Ryu and Ken about the next day's plan: To visit the martial arts actor Fei Long.
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