Nidaime Mr. Karate, also known as "The Invincible Dragon", is considered to be one of the best martial artists of modern age. Within South Town, the name "Mr. Karate" brings absolute terrors, a few decades ago the first Mr. Karate was the fearsome killer of a tyrant. The Kyokugen-ryu Karate has cut all ties with Geese Howard, even becomes his enemies, however that title is still the most feared in this place. Afterall, the second Mr. Karate was the one who defeated the first.

There is a Karate meeting in Okinawa at the moment. The meeting involves the most respected Karatekas from some Karate schools. There is Ryu and Gouken of Ansatsuken's Mugen sect and Akuma from Ansatsuken's Satsui no Hado sect. Heihachi Mishima, Kazuya Mishima and Jin Kazama are fighting against each other, however they are the only disciples of Mishima clan's Karate, they are also invited. As the current master of Kyokugen-ryu Karate, Ryo Sakazaki should join the meeting.

However, his wife, King, just gave birth to their first daughter a month prior. Their romance was not easy, they were once rivals, enemies, then they became friends, teammates before being a couple and marrying each other nearly a year ago. Ryo cannot leave while his wife and infant daughter are in South Town, where the enemies of Kyokugen-ryu Karate are lurking around, so the one to represent Sakazaki's Kyokugen-ryu Karate would be Takuma Sakazaki, the first Mr. Karate, while Marco Rodriguez follows him as his attendant.

Ryo is on his way back home from the grocery store. In times like these he regrets sending Yuri off to Italy to marry his best friend, Robert Garcia. As a martial art maniac, Ryo prefers refining his fighting skills to doing shopping. He imagined marrying a fine martial artist would give him more time doing martial arts, however reality is not as he thought, especially when they had a child and his most loyal disciple is not in town. King, unlike how her classy appeareance indicates, also has some tricks to make him forget about martial arts when they are alone in the bedroom.

While walking home, the Karateka suddenly sees a familiar figure. An Asian woman in her late 20s or early 30s. She looks a bit tomboyish, kinda like his wife, however her appeareance is not as classy, there is a vile and cunning aura emitted from her eyes. But that vile and cunning aura is rather attractive, similar to how a bait is attractive to the prey. That woman is Luan, the Deva of Hizoku clan's South Emperor sect. They met each other seven years ago.

"Long time no see.", Luan opens the conversation.

"You disappeared 7 years ago.", Ryo replies. "Why are you here now?"

Luan looks around, as if she does not want anyone to witness their conversation. However her eyes emit a mischievous aura, those are the eyes of a playful kid, or a flirting woman. She says with a seductive voice: "You have a wife now. Do you really want others to see us talking?"

"Righteous men have nothing to fear.", Ryo says.

"Well said, "The Invincible Dragon" of Kyokugen-ryu Karate.", Luan chuckles. "However, we will see tomorrow morning whether you are a righteous man or a coward. We will be waiting for you at room 209 of Black Dragon hotel. Don't tell anyone about our meeting, OK?"

"Room 209 of Black Dragon hotel?", Ryo tries to ask, however the woman has vanished just as sudden as how she appeared.

The next morning, without telling his family, Ryo goes to meet Luan. The people from Hizoku clan are formidable, he should figure out what Luan is scheming before someone else gets involved.

Ryo now stands in front of the door of room 209, Black Dragon hotel. He knocks the door. A familiar woman voice tells him to go in. The Karateka opens the door and goes inside. This is a big luxury room with one bed. If Luan comes alone, she would probably not rent such a big room. If she does not come alone, there should be other assassins hiding somewhere around this place, waiting for "The Invincible Dragon" of Kyokugen-ryu Karate, or so he thought. Ryo looks around, however he does not see any signs of an ambush, all he sees is Luan sitting on the bed, sitting next to her is a young Asian girl. From her appeareance, Ryo concludes that she is around 5 to 8 years old, probably a subordinate or disciple of Luan. Ryo has faced against a number of underaged fighters, however he has not fought anyone this young. But the Hizoku is anything but normal, afterall there was a kid who achieved one of the highest ranks in Hizoku, a Deva of East Heretics sect.

"What do you want from me?", Ryo asks.

Luan slowly stands up. She calmly walks toward Ryo, the movements look slow but she has reached the man's position in a blink of an eye. Ryo remarks that the movements of Hizoku clan member are indeed unpredictable. The woman suddenly falls into Ryo's chest, as if she was a maiden wanting an embrace from her lover.

"You are so mean.", Luan says with a flirting tone while touching Ryo's chest with her fingers. "It's been 7 years since the last time we met and you act like I'm a stranger."

"You are not usually this flirty.", Ryo says while slowly pushing her away. "I have a wife and a daughter now. We should keep an appropriate distance."

"Daughters.", Luan says, she has stopped using her flirting attitude for a more serious tone.

"Daughters?", Ryo repeated, he does not understand what Luan meant.

Luan waves her hand towards the little girl sitting on the bed. The girl immediately stands up and quickly comes. Unlike the flirty attitude from the adult, this girl moves confidently and energetically. Ryo stays cautious, he is in a confined room with a Deva of Hizoku clan, one moment of carelessness can lead to terrible consequences. Nidaime Mr. Karate carefully looks at the girl's movements, trying to find any indication of her martial art prowess. She walks quickly but leaves only small sounds, the height of her head remains the same while she is moving. This kid definitely can fight, her skills should probably be similar to Luan's, which prioritizes in swiftness.

"Don't be so cautious, father.", the girl says. "If we want to kill you, mother would have put a whole on your chest when she fell into you."

"What do you say?", Ryo says loudly, he cannot get the meaning of the kid's words.

While Ryo is still confusing, Luan says to the kid: "You are still too inexperience, Thư. Your father understands my techniques, when I embraced him, he had already placed his palm to my Low Tanden. If I tried to attack him, he would release his internal energy and disperse my Qi with a "Kou-ou Ken", I would not be able to deal a fatal blow on him in that situation. Am I right, darling?"

"What are you trying to do, Luan?", Ryo asks again, he is slowly losing his patience.

"I call you here to let you meet your daughter.", Luan says. "Her name is Bùi Thị Anh Thư."

"That is not a Chinese name.", Ryo remarks.

"Yes, it is not.", Luan replies. "When I left, I did not know I was pregnant with your child. I returned to work as an assassin when we were separated, I also did not want to get involved with other Hizoku members, so I lived and accepted jobs in Việt Nam. That's why I gave her a Vietnamese name. "Anh Thư" means "Intelligent Lady" in that language."

Ryo takes a better look at the girl, this time not on her movements, but her face. She looks exactly like her mother, the nose, the thin eyebrows, the tomboyish yet sadistic smirk. However her eyes do not have the mysterious aura of her mother, those are some fierce eyes that look directly into the other person, as if she is about to swallow them. These are the eyes of a Sakazaki.

"The Invincible Dragon" remembers the incident 7 years ago, when those from the righteous sects collide with the Hizoku.