Terry and his brother,Andy lived in the orphanage where they were both adopted by Jeff Bogard.
Many years later,Terry and Andy are trained in a martial arts by Tung Fu Rue to gain the streets and face enemies.
That night,Andy saw Jeff getting killed by Geese Howard before he quickly escaped with the help of Joe Higashi. They tell Terry what had happened. They soon learned that Howard is announcing a tournament where he claims that if any of them defeats all of their opponents,They'll be facing Raiden,an Australian Wrestler,and himself as the final challenge.
The trio enters the tournament and meets with Tung Fu Rue. Terry and Joe won against Richard and Duck King,but Andy is lost to Michael Max. Tung Fu Rue gets killed by Hwa Jai,a former Muay Thai Champion. Howard learned about Terry and Andy and plan to have Hwa Jai kill him once he faces him. Joe later won against Michael while Hwa Jai tries to kill Terry,but he overpowers and snaps his neck,killing him.
Joe allows Terry to win so he can face Raiden. He gets overpowered and tried to slam him,but Terry quickly rolls over and wins. He later faces off with Howard,who nearly kills him. Terry gains the upper hand to outsmart Howard and throws him into a garbage truck. Joe pulls the lever of the compactor to crush him to death. Terry,Andy,and Joe celebrate their victory before their training.