In 1987, the teenage martial artist Ryo Hazuki arrives from Japan in Wan Chai, Hong Kong, on the trail of his father's killer, Lan Di, of the criminal Chi You Men organization. He searches for Master Lishao Tao, the only link to the whereabouts of Yuanda Zhu, a martial arts expert who sent Ryo's father a letter warning him of Lan Di's intentions. When Ryo finds Tao, whose real name is Xiuying Hong, she refuses to help, considering his quest for vengeance reckless. The two part ways, but Xiuying continues to monitor Ryo's progress. Ryo encounters Wuying Ren, the wily leader of a street gang. Ren decides to help Ryo after deciding there may be money to be made in Ryo's mysterious phoenix mirror; Lan Di took the second mirror, the dragon mirror, when he killed Ryo's father. Wong, a street boy who admires Ren, and Joy, a free-spirited motorcyclist, assist Ryo in his journey.