Ken and Ryu are at some docks, where they are fighting against a group of men. Ryu says he thought Guile told them to take the hands off approach, but Ken reminds him that Guile hadn't counted on the smugglers bailing out so soon. The two knock several guys into the water, and Ken jumps over to where Ryu is. He takes out another guy by kicking him, and asks Ryu if he needs help. Ryu says he was doing fine, so Ken goes to jump kick another two bad guys. But he trips up on some ropes, and the guys grab him.

Before they can throw Ken off, Ryu throws a hadouken at them. They drop Ken, and Ken takes one of them out with a kick.

However someone else pulls down a lever, causing a crane to drop its load over Ryu. Ken takes the guy out with a super punch, but then part of the dock starts to break apart. Ryu gets dragged off into the water.

Ken dives down to save him, but as they get back to the surface, he tells Ryu that this water tastes horrible. Ryu tells him if he thinks that's bad, he knows something worse... the bitter taste of defeat. He points out that the smugglers are getting away in a boat.

At a dojo in Shadaloo, Sakura is sparring with two opponents. She defeats them with relative ease...

...but gets tapped on her shoulder from behind. Her sensei tells her that she made an excellent move, but she mustn't be so focused ont he danger in front, that she forgets the danger behind. If they are too ever overthrow their oppressor, they must follow the example of the warrior who is their inspiration: Ryu, the only man who ever defeated Sagat.

However Sagat slams open the doors and says that no one has ever defeated Sagat, and no one ever will! He orders his men to arrest the sensei, but one of them notices Sakura. He asks the little girl what she thinks she'll do.

She responds by throwing him to the floor. Another guy grabs her from behind, but she sweeps him off his feet. She says to never forget the danger from behind, but then sees that her sensei is in trouble. She grabs into the guy from behind...

...but then Sagat grabs her. He starts laughing at her, but the sensei calls him a coward for only fighting students. He kicks Sagat, but Sagat calls him a fool for challenging him. The sensei tells Sakura to run and find Ryu, as he's the only one who can help them. But she says she must help him.

Sagat throws out a tiger shot, so the sensei pushes Sakura aside and gets hit by it. Sakura manages to escape, and runs out of the dojo.

Sagat tells his men to let Sakura go, as he thinks she's just a weak child who can't accomplish anything. He then orders for the dojo to be torched, as he wants every trace of Ryu to be destroyed. No one defies Sagat and wins!

Back in the USA, Escher tells Ken and Ryu that they've ruined a very carefully staged undercover operation. Ken says they had to move in, as the smugglers were going to bail with the goods. Guile says he doesn't want to hear it, and tells him that his wildcatting has ruined another mission. Ken says it was a judgment call, and besides, he would have brought them in for questioning, if he hadn't had to save Ryu's butt.

Ryu tells him the only reason he had to save his butt was because he wasn't watching his own. Guile tells them to can it, as Escher and he have got work to do. He tells them not to let the door hit them on the way out. Ken and Ryu head outside, and Ken wonders what that was all about. Ryu tells him he wouldn't have had to rescue him if he'd been watching his own back.

Ken laughs this off and tells him he doesn't need to make excuses. Ken says that when you're the world's greatest warrior -like he is -part of your job is to look after your sidekick. Ryu does a quick punch that stops just before Ken's face. He tells Ken that he's heard this "world's greatest" stuff ever since they first started training together. And just then, he could have dropped him before he knew what hit him. Ken says he knew he wouldn't, that's why he didn't try to block.

Ryu asks if he can block when he knows it's coming, and manages to hit Ken with a few of punches. He tells Ken that he may have greater natural ability, but his lack of discipline will keep him from being the best. Ken responds by sweeping Ryu.

Ken tells him that this is a training drill, so he should try and catch him. He runs off and Ryu follows, as they both leap over a hot dog cart. Ken continues to run, but Ryu leaps on top of a moving van...

...and lands in front of Ken. But Ken jumps over a fence, so Ryu follows him. They land in a fountain, and throw hadoukens at each other.

The projectiles collide and explode, and the two start fighting with traditional punches and kicks. Ken hits Ryu hard enough to knock him down, and he asks Ryu if he sees the difference between them now. He says once again that he is the world's greatest warrior, whilst Ryu will always be the second best. He throws out another hadouken.

But he aims it at the water, causing it to splash upwards. He then quickly jump kicks his way through it, but Ryu is ready for him. He grabs Ken's foot and throws him, and then tells him the only difference he sees between them is honor. That was a cheap shot! Ken tells him he sure hasn't done anything to impress him. Ryu asks if he wants to see something impressive, and he says he does.

Ryu performs a variant of his hurricane kick, but this time he spins in place. Ken is dragged in and hit a couple of times, knocking him down. Ryu thinks he's messing around, but he says he doesn't feel so good. Ryu tells him that's the super hurricane, it can really mess you up for a minute. But Ken says it's not that, he suddenly feels really crummy.

Ken suddenly loses consciousness. He is taken to a hospital, where Guile tells Ryu that the water Ken drank earlier was full of some nasty bugs. Ryu says they think that by striving to be super human, they've taken control of their destinies, when all it takes is a couple of germs to lay them low. Guile tells Ryu to go home and get some sleep, whilst he'll watch over Ken tonight.

Back in Shadaloo, Sagat and his men are eating and drinking. One guy asks Sagat why he is so worried about a few fighters who have a fixation with Ryu. Sagat says he has his reasons... reasons he will never forget. Back in the USA, Ryu is walking across a bridge.

But then some guys show up and says it's a toll bridge, and he can't pass without paying. Two more guys appear from behind him, and one says the night belongs to him and his friends, so he'd better cough up. Ryu tells him he's picking the wrong fight, especially tonight. One of the guys tells him he may be a good fighter, but the odds are four to one. But then Sakura appears, and gets behind Ryu. She tells them they're wrong -the odds are four to two.

Ryu quickly takes out three of the guys, sending them all off the bridge and into the water below. He sees the last guy challenge Sakura, but before he can help her, she deals with things herself by throwing him into the water with the others.

Ryu thanks her for helping out, and says if there's anything he can do for her, just let him know. She tells him it's an honor to help the great Ryu, the warrior she has dreamed of meeting all her life. Ryu takes her to a diner, where she explains how she got here -she sneaked past the military checkpoints and stowed away on a jet that was heading for New York. She had to find him, as they need his help. He asks how she knew where he was, and she says that the anti-Sagat forces always know how to find him, the world's greatest warrior. When Ryu hears that, he says he knows someone who would disagree with her.

She tells him he is a legend in Shadaloo. When he was barely older than her, he defeated all of Sagat's fighters in the ring, and then challenged Sagat himself. Several years ago, Ryu faced Sagat. Sagat called him a fool to challenge him, as he is the greatest. Ryu told him they should fight, to see who the world's greatest warrior was.

The two clashed, and Ryu managed to knock Sagat down with a kick. But Sagat got back up immediately, and hit Ryu back with a tiger knee. As this was going on, a large crowd was watching, which included Sakura and her sensei.

Ryu was on his knees, but said that he could be the best... not just Ken. Sagat started to laugh at him, but Ryu suddenly lunged forward and performed his shoryuken. Sagat was sent flying back.

Sagat was defeated, and realized that he had been scarred for life. He said that no one defeated him, and ordered for his men to get Ryu. But when the crowd saw this, they stormed the place and started beating up Sagat's men.

Ryu used this opportunity to escape. Back in the present, Ryu says he wasn't the world's greatest warrior. The men who allowed him to escape, who were led by her sensei, were the true heroes. He says that he will go to Shadaloo, and help to save her sensei. Sakura says she knew he would, she knew he wouldn't let them down.

They go back to the Street Fighter HQ, where Ryu explains things. He says he owes the rebels a debt of honor, and wants to use the jet so he can be dropped into Shadaloo, so he can repay it. However Escher says they can't do it -their resources are limited, as they're still trying to find those smugglers. Guile tells him this is a debt of honor, if they can do this for Ryu and follow up Sagat in the bargain, he's all for it. Escher says he knows when he's beat, and asks who he wants on the team.

Guile says he wants Honda and Dee Jay. But Ryu says there can't be a team, as they can't risk a full scale mission without putting Sakura's sensei in danger. Guile realizes he's right, and says it looks like it's just going to be the two of them. Sakura tells him he means the three of them, but he says whilst he knows how she must feel, they can't take a kid like her along on a dangerous mission like this.

Sakura throws him to the floor and says that Shadaloo is the most dangerous place in the world -she's already survived the worst it has to offer. He's going to need her to lead them. Guile tells the kid she's hard to argue with, but she tells him not to call her "kid".

The team head to Shadaloo via jet. As they fly, Ryu starts thinking about things, such as Ken calling him a sidekick, Sagat calling him a fool for challenging him, and himself saying he can be the best. Sakura asks if he's ok, as he looks troubled. He tells her that the first time he fought Sagat, it was for all the wrong reasons. He hopes now he's wiser, through all his spiritual journeys.

Guile says they've entered Shadaloo airspace, and enemy radar has locked onto them. He has to take evasive action, as two missiles are launched at them. He realizes they are heat seeking missiles, and decides to give them something hotter to aim at. He does so by firing off two missiles.

These missiles collide with the others, causing them all to explode. He then lands the jet in a street, where he and the others quickly cover it up.

They start to run through the streets, but a helicopter suddenly appears. It chases after them, and then manages to drop a net on Ryu.

Ryu gets taken away before Guile or Sakura can do anything. He's taken back to Sagat's fortress, where Sagat meets him. He calls Ryu the living inspiration of the revolutionary forces, and is now in his hands at last. Whilst he'd love to execute him now, that would only make him a martyr. Therefore, he's decided to recreate their battle, live on television, and this time everyone will see when he emerges triumphant.

Back in the USA, Ken is showing off to a nurse, when Escher appears and tells him he must be feeling better. Ken asks what's wrong, as neither Ryu or Guile have come to see him. Escher says nothing's wrong, as Ryu is on assignment. He's come here to check on him whilst Ryu is away. Ken can't believe Ryu would go on assignment without him, as they're partners. He thinks he should be with him and gets up.

But as soon as he does this he feels woozy again, and Escher has to help him back into bed. Escher tells him to take it easy, as Guile is with Ryu, and there isn't anything that those two can't handle. Back in Shadaloo, the battle has begun. Ryu has already defeated all of Sagat's fighters.

Sagat tells him well done -he has survived all the preliminary bouts quite nicely, but it's a shame it seems to have let him so exhausted. Sagat then gets up and enters the ring, and whilst Ryu claims he's still strong enough to beat him, Sagat thinks not. He has been waiting for this day, and has trained hard. Whilst those rebels may believe that he beat him once, they will see that he is now match for him now. Ryu's defeat will be televised throughout Shadaloo, and his follower's spirits will be broken like his own. Sagat starts the fight by throwing out a tiger shot.

Ryu manages to get out of the way, but Sagat follows it up with a low tiger shot. Ryu jumps over that, but as he tries to attack, Sagat is ready, and he kicks him a couple of times.

Sagat declares that Ryu is finished, and it's time for a new legend. He'll crush all that oppose him! This is being broadcast throughout Shadaloo, and at the fortress, some guards are watching. Nearby, Guile asks Sakura if she's sure this is where her sensei is being held, and she says she is. He notices the guards watching TV, and whilst he's not sure what they're watching, he thinks this is a good time to make their move.

He throws out a sonic boom, whilst Sakura throws out a hadouken. The guards notice too late, and are each hit by the projectiles.

Guile and Sakura fight and defeat the remaining guards, as Sakura says that was just like Ryu. Guile tells her to remind him never to call her "kid" again, and takes some cell keys from one of the guards.

They find who they're looking for, and Sakura is reunited with her sensei. The sensei explains that Ryu is in danger, as he was taken for a rematch with Sagat. Guile says they've got to go to him. Back at the fight, Sagat asks Ryu who is the strongest? He wants him to say that he is the world's greatest warrior.

Ryu tells him he's not even second best, and kicks him off. He says that he has honor to fight for, not glory -what does Sagat have? Sagat charges and delivers a mighty kick, but Ryu blocks it. He hits Sagat with a shoryuken, but Sagat laughs it off and tells him his dragon punch is no longer a threat to him. He says that he's developed something that won't just leave scars, and charges towards him.

He does a combo of punches and kicks, but Ryu avoids every attack. The two stare each other down, and Ryu says he has something new as well: the hadouken!

Sagat is hit by the hadouken, and gets blasted out of the ring. With Sagat defeated, Ryu tells him he's right -it is time for a new legend. He shouts for all of Shadaloo to know that Sagat's battle is unjust, and can never be won.

Ryu then sees some lights above him, and looks up to see a jet. Guile descends on a rope ladder, but Ryu collapses. As this is going on, Sagat gets up and slowly walks away.

Sakura is taken back to her dojo, and Guile tells her that someday the Street Fighters will be back to put an end to Shadaloo's evil rulers. Sakura says the resistance will be here to help them, and when Ryu defeated Sagat, he gave them hope again. She thinks Ryu truly is the world's greatest warrior, just like the legends say. She hopes he will be alright, and Guile says he'll be fine, he just needs a lot of rest.

Ryu wakes up to the sound of Ken telling him this is what happens when he tries going on a mission without him. He needs him for backup, as he is the world's greatest warrior, after all. Ryu tells him perhaps he is, but only time will tell. But one things for sure, and that's that Ryu is the world's greatest pillow fighter. The two start a pillow fight, and laugh.