Ryo Hazuki, the teenage martial arts expert from Shenmue I, arrives in Hong Kong with only a little money and the address of a man called Lishao Tao (who supposedly holds knowledge on Yuanda Zhu's whereabouts). As Ryo explores the city, he encounters several knew friends and foes alike who will either aid or impede his journey for clues on the mysterious Kung-Fu master Lan Di.