Darkness at Kowloon Palace.
Ryu, Ken, and Chun-Li fight their way through Kowloon Palace, defeating all the foes they encounter. They eventually reach the outer perimeters 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 Chun-Li is soon taken hostage by Lean. Chun-Li's father Dorai, who is the police chief of Hong Kong, enters the scene with some other policeman. Dorai neutralizes Lean with a shot in the head and rescues the trio from Kowloon Palace. Dorai accompanies Chun-Li, Ryu, and Ken back to their 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.