Ryu is disturbed and sees a foreboding stranger in his nightmares. Ryu and Ken sneak out for adventure at the G.I. Bar. Ken's father makes a surprise visit. Ryu is unsettled by the old Dōjō.
In the past, Gōtetsu instructs the young Gōken and Gōki. Goki is drawn to the power of 'Satsui no hado'. In the present, Ryu and Ken try to create their first Hadōken. Gōken is disturbed by Ken's approach and they argue.