An elderly man is traveling to China from a Japan decimated by Word War II. He is carrying his two infant grandchildren, twin boys, whose parents were killed during the war.

While approaching the summit of Mount Fuji, a bomb, long dormant, explodes. The radiation from the bomb scars the face of one of the boys. The old man, however, finds a new strength, a strength that allows him to cross the Sea of Japan and the Himalayan Mountains in order to seek aid for his grandsons.

The old man soon arrives at a monastery deep in the Himalayan Mountains. He is greeted by his older brother. The old man and the twin boys are to make the monastery their home.

The years pass and the boys grow into men. Wu Teh (the Dragon) and Ling (the Cobra) however, have chosen different paths. The scars on his face have left Ling bitter, cruel and devoid of mercy. Ling has also been seen in the company of the evil Dr. Nhu.

During martial arts training, the brothers come to blows. Ling loses all control and attempts to take his brother's life. The grandfather attempts to intervene and make peace between the two. A spear meant for Wu Teh strikes the old man and kills him. Ling flees the monastery while Wu Teh swears vengeance.

After his grandfather's death, Wu Teh leaves the monastery and settles in Southern California. He studies journalism and becomes an anchorman for a local news program. While examining photos of the Prime Minister of Japan, Wu Teh spots the illustrated skin of Dr. Nhu and the scarred face of his brother, Ling the Cobra. He knows that they will attempt to assassinate the Prime Minister.

Speaking at the local university, the Prime Minster is indeed targeted for death. The Dragon spots Dr. Nhu and barely stops the assassination attempt. As he is subduing Dr. Nhu, the Cobra strikes. His bullet pierces the Prime Minister. Both Ling and Dr. Nhu escape as the Dragon tends to the wounded Prime Minister.

Hours later, the Dragon enters the hospital room of the Prime Minister, who is near death. The Dragon removes his medallion and the essence of life and strength revive the Prime Minister.

The Dragon is left to ponder when Dr. Nhu and the Cobra will strike again.