Emperor Garuda is a tyrannical dictator who secretly serves the powerful sorcerer Jaquio. He established an army of warriors. Garuda is a threat prior to Jaquio.
Garuda and his evil army capture New York City on behalf of Jaquio's orders. Ryu Hayabusa, a descendant of the Hayabusa ninja clan, soon finds out. The young ninja travels to New York City in an attempt to stop Garuda.
During the journey, Ryu faces many of Garuda's henchmen. He battles and defeats a cyborg after entering New York City. Deeper in the city, Ryu encounters a local kick boxing champion working for Garuda. He is defeated by Ryu in battle. Garuda dispatches a small portion of his army and its colonel to stop Ryu. They are defeated in combat. In desperation, Garuda pits his own ninja against Ryu. The ninja is also defeated.
Ryu travels further through New York City until he encounters a temple-like lair. He goes inside and finds Garuda in the throne room. In a showdown, Garuda uses his magical abilities against Ryu. First, he discharges bolts of lightning from his hands while levitating but he is injured. In desperation, Garuda transforms into a more powerful being and shoots rays of energy at Ryu. The young ninja manages to defeat Garuda and kills him. New York City is freed from the emperor's reign.