This round starts in a canyon. The green ninjas are the only enemies here, but there is a new variant of them: flying ninjas. These ninjas will fly around in circles, throwing shuriken. This section also has many jumps over bottomless pits.
Towards the end of this section, there are a couple of jumps where you'll need to use some logs to progress. Right at the end there is a part where you have to quickly jump from log to log and then somersault jump up to the top right corner to make it to the end.
The next section takes place in Tokyo. As well as ninjas, there are some new types of enemies here -a kung fu punk who will attack with a flying kick, and some Kunoichi. The Kunoichis are disguised as nuns, and will walk past you before removing their disguises and jumping around. There are a few pits in this section -the kung fu masters will use their kicks to try and knock you into one.
There are two ways around this section -one is to just make your way right, or the other is moving upwards and then jumping from roof top to roof top to make your way across. Going up means less chance of falling into a pit, but there are plenty of ninjas and bombs up there. The exit of this section is located near a sign with "Disco" on it.
The boss of this round is the Shadow Dancer. What makes this battle more difficult is the fact that it takes place in a disco, so there are a lot of flashing lights which can make it tougher to locate where the boss actually is. He'll jump around and land next to you, throwing a shuriken high and then low. He can also throw them whilst jumping. When he lands next to you, duck and attack, then jump to avoid his low shuriken.
As you keep hitting the Shadow Dancer, he will keep losing his shadows until there are none left. When this happens, he will start throwing shuriken in sets of four whilst jumping, which are trickier to avoid. Other than that his tactics remain the same as before.