The movie begins with the main protagonist Ryu facing off against Muay Thai champion Sagat. With the thunder roaring in the background, the two fight an epic duel. However, despite his renowned strength and abilities, World Warrior champion Sagat finds himself losing the battle. Channelling his chi, he unleashes his built-up internal energy at his challenger. Ryu evades the blow, but Sagat knocks him down with a couple of kicks. Sagat attempts to finish Ryu off. However, Ryu counter-attacks by unleashing his chi in the form of a Shoryuken, inflicting a severe wound on Sagat’s chest, a wound that later becomes Sagat’s trademark scar. Enraged, Sagat charges towards Ryu, determined not to lose. Ryu, seeking his inner calm, gathers his internal energy and unleashes it in the form of a Hadouken. The battle is over. However, unknown to the combatants, the fight was being recorded and analyzed by a Monitor Cyborg transmitting the data to Shadowlaw headquarters and its leader, M. Bison who would later order a manhunt for Ryu and recruit Sagat to become his “special soldier” alongside Vega and Balrog.

Several years later, and Ryu, the legendary “Wandering Warrior” now travels the Asian continent in search of battle. On the other side of the world, Ken, Ryu’s old training partner, friend, and rival, finds himself dissatisfied with the lack of challenge. Eagerly desiring a rematch with Ryu, he reminisces over his childhood experiences. Bison gains an interest in Ken after seeing Monitor Cyborg footage of him fighting T. Hawk and notices that Ken uses the same style as Ryu. Meanwhile, rumors of an underground terrorist organization named Shadowlaw that has unleashed several attacks on worldwide governments and political figures attracts the interest of Interpol.

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