The next day, Heihachi greets the competitors before the tournament begins, during which a fellow fighter, Michelle Chang, attempts to kill Heihachi, but Heihachi outsmarts Michelle and tells her, along with the others, that he will be waiting in the resort's tower for the final round. Kazuya, Jun, and Nina escape, and Anna vows to kill Kazuya at the tournament, before fleeing.

Suddenly, Kazuya is ambushed and almost strangled by Nina, but Jun stops her, Kazuya subdues Nina, but Anna arrives with a bazooka and tries to kill them all with one blast. That night, Kazuya trains alone, and is visited by Jun, who tries to return the locket to him and talk him out of taking his father's life, but Kazuya stubbornly refuses to give up, stating that he went as far as to sell his soul to Devil in order to survive the fall and take his revenge. During the voyage, Kazuya, who knew Nina was waiting for him at the port, boards the boat by jumping off a bridge. Lee allows Jack-2 on board, along with Jun and Lei. Irvin is no match for the bulky android, and is defeated with a single punch that sends him into the water, from which he does not resurface. The guards refuse, and Lee orders his bodyguard, Bruce Irvin, to stop Jack-2. There, they encounter Jack-2 and a little girl, demanding to be allowed on board. On the day of the tournament, Jun and Lei arrive at the port to catch the boat carrying the fighters to the Mishima resort.

Neither of them is aware that their feelings for Lee are unrequited. Heihachi's foster son, Lee Chaolan, opposes this, and tries many times to have Kazuya assassinated by seducing the Williams sisters, Nina Williams and Anna Williams (who despise one another), and using them to do his dirty work. Heihachi knows about this, and plans to meet his son at the upcoming tournament, possibly handing the Mishima Zaibatsu over to him. Meanwhile, it transpires that Kazuya survived the fall and has grown into a bitter, vengeful man. Sixteen years later, Jun is now working for Tagging along with her is Hong Kong police detective, Lei Wulong, who is taken with her, although she does not return his affections. Jun, who tried and failed to locate Kazuya, finds the locket and keeps it with her into adulthood. Kazuya screams as he falls into the chasm. To make his son prove his strength, Heihachi throws Kazuya into a deep ravine, but not before ripping a locket containing a picture of Kazuya's mother from his son's neck and tossing it aside. When Kazuya offers to kill the bobcat, Kazuya's father, Heihachi Mishima, appears and drags Kazuya away. He meets a young girl named Jun Kazama, who is crying after seeing a bobcat kill a defenseless rabbit. The film starts with a flashback featuring Kazuya Mishima, a child studying martial arts under his father.

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