After Ryu defeated several prisoners, he is faced with a bug strong prisoner. He is Sagat, the former Muay Thai kick boxing champion. Sagat was not happy that Ryu defeated the prisoners. So, Ryu and Sagat fought. At first, Sagat had Ryu pinned down, then Ryu retaliated. Afgter the fight, Sagat tells Ryu on how he had it all, and why he was in prison, he as well as Ryu was set up by the Ashura. Meanwhile ,Ken finally finds the person who set up Ryu with the drugs. Then, Ryu was free from prison. Now, he helps Ken to defeat the Ashura.

Ryu and Ken head for India. They take a boat up the Ganges river, where they find a doctor with a makeshift hospital who is being harassed by some local people who want the hospital gone. Ryu and Ken help the doctor and then, with some of Ken's fortune, the doctor can build a better hospital. Ryu and Ken continue their journey up the river and find a village where Dhalsim lives. but, Dhalsim refuses to teach them about the "Ki". Then, a group of treasure hunters enter a forbidden temple to steal an ancient artifact, but they suspect that there is a monster that guards the treasure.