After thief Alex Cardo gets caught while stealing an ancient katana in East Asia, he soon finds himself imprisoned and beaten up by the crowd there. Especially one of the guards, Demien, feels upset by Alex appearance and tortures him as often as he gets the opportunity. Alex finds one friend and mentor in the jailhouse, Master Sun, who teaches him a superior fighting style called Iron Hand. When a 'best of the best kumite' is to take place, Demien gets an invitation. Now Master Sun and Alex need to find a way to let Alex take part in the kumite too.
Street fighter and thief, Alex Cardo (Daniel Bernhardt), steals an ancient sword from a wealthy business man, David Leung (Pat Morita). After being betrayed by his crime partners, Alex is sent to a brutal prison where violence is continuous. There, he meets Master Sun (James Hong) who teaches Alex honour and discipline, changing Alex's self. He also teaches Alex "The Iron Hand," the deadliest of all fight disciplines. When Sun mentions the greatest fight tournament, the Kumite, Alex vows that he will win the tournament upon his release to honour Sun. His release comes quick, courtesy of Leung who makes a deal with Alex to retrieve the sword from his former friend, for that sword will be awarded to the Kumite's winner. As Alex battles through some of the toughest fighters in the world and is encouraged by his new friends (led by Donald Gibb), Alex bears a slim chance of defeating the greatest fighter the Kumite has ever seen: Demon, who was also the most brutal guard in Alex's prison days.
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