Shang-Chi is the son of the Mandarin, but refuses to follow in on his father’s footsteps and flees to the United States.
10 years later, Shang-Chi and his friend Katy work at a hotel in San Francisco. Razorfist and his men attack them in a bus, but they manage to escape.
Shang-Chi and Katy visit Katy’s cousin Jon-Jon, a small time gangster who can hook them up new identities.Shang-Chi has to participate in a cage match to pay for Jon-Jon’s help, and ends up fighting his sister Xialing.
Katy realizes that Jon-Jon sold Shang-Chi out and saves him. They steal a car and flee to a construction site, where Shang-Chi fights his master Death Dealer.
Razorfist captures Katy to force Shang-Chi to give up, and Xialing takes them to the Ten Rings’ lair where Shang-Chi reunites with the Mandarin.
The Mandarin is preparing an attack on the Valley of the Sleeping Dragon, a hidden city in the mountains, now that their magical barrier is weakened in order to reclaim a great power and conquer the world.
The Mandarin believes it is his duty to rule the world and genuinely cares about Shang-Chi and wants him by his side, but Shang-Chi refuses.
Xialing is disappointed their father doesn’t want her by his side and helps Shang-Chi and Katy to escape.
Shang-Chi, Katy and Xialing go to the Valley of the Sleeping Dragon to warn them. They meet its protector Jiang Nan and her daughter Jiang Li, who bonds with Shang-Chi.
Shang-Chi trains with Jiang Li to unlock his chi, Katy befriends the locals and adopts a magical creature that she names “Norris”, and Xialing learns the true history of the Mandarin.
The Mandarin arrived in the Valley of the Sleeping Dragon as a young man and trained there, but stole the ten rings and escaped to build his criminal empire.
Jiang Li leads Shang-Chi to the Great Protector, the dragon who holds the great power that the Mandarin is after.
The Great Protector claims Shang-Chi is destined to protect the world, but Shang-Chi just wants a normal life.
Xialing is secretly still loyal to the Mandarin and reluctantly disables the magical barrier, allowing the Mandarin and his forces to attack.
The Mandarin subjugates the locals and uses the ten rings to control the Great Protector in order to use him as a weapon. Jiang Nan stands against him, forcing the Mandarin to kill her.
The Mandarin orders the locals to submit to him or die. Xialing pleads for their lives, but the Mandarin refuses to spare them. Xialing realizes he isn’t a noble warrior and chooses to die with the locals.
Shang-Chi escapes during the attack, accepts his destiny, unlocks his chi and returns to face his father, saving the locals.
There is a huge battle between the Mandarin’s army and the warriors of the Valley of the Sleeping Dragon and the magical creatures that live in the mountains.
Razorfirst fights Jiang Li and almost kills her until Katy intervenes and takes him down. Meanwhile, Xialing fights and kills Death Dealer.
Shang-Chi battles the Mandarin. They both use their powers at first, but then Shang-Chi challenges him to an honorable fight, which he wins.
Shang-Chi reclaims the ten rings and frees the Great Protector, who repels the remains of the Mandarin’s army. He then returns the ten rings to Jiang Li.
Katy chooses to stay in the Valley of the Sleeping Dragon, while Xialing leaves to search for redemption.
The Mandarin accepts defeat and expresses pride in Shang-Chi, who in turns expresses respect towards his father even if his ideals are wrong.
The Mandarin is imprisoned in the Valley of the Sleeping Dragon, while Shang-Chi returns to the world to destroy what is left of the Ten Rings organization.