After escaping from Kowloon Palace, Ryu, Ken and Chun-Li decide to have an easy day in Hong Kong. First, they have breakfast. Then, Chun-Li suggested to go see her friend, the martial arts superstar Fei-Long, perform in his latest movie while it is in still production. To Ryu and Ken's surprise, Fei-Long decides to choose one of them in a fight scene in the movie. He chooses Ken. Then, they fight, and it turns out to be one of the best fight scenes ever shot.

For several unrelenting days, Captain Dorai is hunting down a powerful underground drug ring known as "Ashura". Dorai has already arrested several Ashura members. Now, the Ashura are going to act revenge on Dorai. By doing so, they intend to kidnap his daughter, Chun-Li. One day after school, Chun-Li was spotted by a clown who tried to apprehend her, but, then fought back. Ryu and Ken soon joined to stop the criminals. The Ashura then tried to finish off Dorai at his own home, who was unknowingly waiting for them. Then, Ryu, Ken, Chun-Li and Fei-Long came to help him. They soon realize that some of the criminals are using a dangerous fighting art called "Muay Thai". But, they found a weak spot and finished off the Ashura, for now. Then, Ryu and Ken head for the southeast to discover more about Muay Thai.