As Ryu and Ken near the end of their training they are impatient to master the power of 'Hado'. Their Master, Goken, worries about sharing this powerful technique. Goken sets Ryu and Ken on a quest to find Gotetsu's Dojo where he trained.
In the past Gotetsu instructs Goken and Goki. Goki is drawn to the power of 'Satsui no Hado'. In the present Goken is disturbed by Ken's approach. Ryu and Ken learn more about the history of Ansatsuken, and their master's dead brother Goki.
Goken and Goki vie for Sayaka's attention. Goki uses 'Satsui no Hado' in a sparring match almost killing his opponent. Gotetsu gives Goki an Ultimatum after his abuse of Satsui no Hado. Goki and Sayaka part.
Ryu is disturbed and sees a foreboding stranger in his nightmares. Ryu and Ken sneak out for adventure at the G.I. Bar. Ken's father makes a surprise visit. Ryu is unsettled by the old Dojo.
Gotetsu and Goken consult the Ansatsuken scrolls and discuss Goki's departure. They question the very real potential of Ansatsuken myths becoming reality. Gotetsu confronts a dark presence.
More is learn of the fate of Gotetsu, Goki and Sayaka. Returning to Goken's dojo, Ryu and Ken continue to train, improving their techniques, their Hadoken becoming more advanced.
With a near fatality, tensions are high as Goken is forced to make the hardest decision of his life as an outside force draws closer. The Dojo will never be the same again.