Ken travelled to Thailand to attend the first Street Fighter tournament held by the famous King of Street Fighters: Sagat. Among the other contenders were Retsu, Mike, Gen and his son Lee, Eagle, Birdie, Joe, and Geki. Ryu was also rumoured to be in attendence. Ken was anxious to start the tournament and prove to himself and Ryu that he was the better fighter.
Before the tournament started however, he met his friend, Retsu. After a few words, Ken started his first match without meeting his friend and rival, and was beginning to worry whether Ryu would show. He squared off with a ninja who introduced himself as Geki. A brief match ensued with Ken winning the match with ease. Before the crowd could cheer, a cry went out in the back announcing the feared assassin's loss to a Japanese fighter. Ken knew, before the crowd began clear out, who it was.
Ken arrived to see his friend helping Gen off the floor. Ryu caught sight of Ken and the two shared a few words. Ryu had been busy training since their departure from the dojo. Ken could tell. They both shared the idea of sparring once again and left.
Ken continued to succeed in the tournament, beating a thug named Birdie. However the crowds were dwindling, as they all went to see Ryu. Ken's aggressive, flashy style pleased the crowds, but Ryu won them over with his technique. Ken loved attention and was bitter at the lack of crowds. He wanted more than ever to show his old training partner that he was best.
Ken was looking for Ryu, but ended up finding Retsu instead. He had already started his match with Gen's son, Lee. After Retsu won the match, he came to see Ken. A brief talk, Retsu finally realized why Gouken never trained him in the way of the chi. He didn't have the same fighting spirit Ken and Ryu did. Ken felt sorry for his friend. Retsu said goodbye and left to continue his training.
Ken and Ryu finally squared off in the semi-final of the tournament. Until now, both of the two young men had easily defeated their opponants. They both new this would be different. There would be a fight. Neither could keep a smile off their faces.
Ryu helped his friend up. Once again he proved to be the better of the two. He had barely defeated Ken, who only smiled and told him: "Next time." Ryu had made it to the final match, against Sagat, the King of Street Fighters.
The tournament was coming to the end. Sagat, the Champion Muy Thai fighter, towered over his opponant and wondered how he could be in the final match with him. When the fight began, he quickly found out that he was not fighting some floozy.
He couldn't believe it! Him, Sagat, King of Street Fighters and Muy Thai champion, was getting beaten! No more! He was going to finish him!
"Sho-Ryu-Ken!"
Sagat fell back into the grass. His chest was burning. No! How could he lose?! Ryu looked down on his defeated opponant. Before he could help him up, the crowd swept him away. He was the Champion.
Sagat sat up, still enraged over his loss. He clutched his burning chest and looked down only to see a huge wound. He knew it would be a scar. Seething with anger, he tried to get up.