Chiezo Kataoka plays a cowardly samurai, whose honor is on the line when it becomes necessary to avenge the murder of his father. The culminating duel takes place on a night of fireworks.
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Nick and Ruben are hoodwinked into a "shootfighter" (no-holds-barred, to the death) martial arts match by the evil Mr. Lee, who has a grudge against world shootfighter champ(and teacher of Nick and Ruben) Shingo.
Rick, a down-and-out American boxer, is hired to transport a sword to Japan, unaware that the whole thing is a set up in a bitter blood-feud between two brothers, one who follows the traditional path of the samurai and the other a businessman. At the behest of the businessman, Rick undertakes samurai training from the other brother, but joins his cause. He also becomes romantically involved with the samurai's daughter.
Bison, the ruthless leader of the international terrorist organization Shadowlaw, has been desperately searching for the greatest fighter on the planet for years. He finds it in Ryu, a young wanderer who never stays in one place long enough for Bison to find him. He does, however, get a fix on Ken Masters, an American martial arts champion who studied with Ryu as a child under the same master. Meanwhile, Major Guile of the United States Army is forced to team up with Chun Li from China in hopes of apprehending Bison and putting a stop his international ring of crime.
Increasingly disturbed by the dark energies building within him, Ryu is confronted by Shun, a boy claiming to be the brother he never knew. But before Ryu can consider whether Shun's timely appearance might be more than coincidental, Shun is kidnapped by Shadowlaw. To recover Shun, Ryu must undertake the ultimate journey of self-discovery and learn to control the power threatening to consume him.