When Shang-Chi is seven years
old, Li is murdered by Wenwu's enemies, the Iron Gang. Wenwu dons the ten rings
once again, massacres the Iron Gang, and resumes leadership of his
organization. He makes Shang-Chi undergo brutal training in martial arts but
does not allow Xialing to train with the others, prompting her to secretly
teach herself. When Shang-Chi is 14, Wenwu sends him to assassinate the Iron
Gang's leader. After completing his mission, a traumatised Shang-Chi runs away
to San Francisco and adopts the name "Shaun".
In the present day, Shang-Chi
works as a parking valet with his best friend Katy, who does not know about his
past. They are attacked on a bus by the Ten Rings, who steal a pendant that Li
gave to Shang-Chi. Shang-Chi flies out to meet his sister, fearing that the Ten
Rings will go after her matching pendant. He reveals his past to Katy, who
insists on helping him. They find Xialing at a secret fight club in Macau,
which she founded after escaping from Wenwu at sixteen. The Ten Rings attack
the fight club, and Wenwu arrives to capture Shang-Chi, Katy, Xialing, and her
pendant.
They are taken to the Ten Rings'
compound, where Wenwu uses the pendants to reveal a mystical map leading to Ta
Lo. Wenwu explains that he has heard Li calling and believes she has been held
captive in Ta Lo behind a sealed gate. He plans to destroy the village unless
they release her. When his children and Katy object, he imprisons them. The
three meet former actor Trevor Slattery, whom the Ten Rings imprisoned for
impersonating Wenwu,[N 1] and his hundun companion Morris,
who offers to guide them to Ta Lo.
The group escapes and goes to Ta
Lo, which exists in a separate dimension with various Chinese mythological
creatures. They meet Ying Nan, Li's sister, who explains the history of Ta
Lo: thousands of years ago, the universe containing the village was attacked by
the soul-consuming Dweller-in-Darkness and its soul eaters, but was
saved by a Chinese dragon called the Great Protector who
helped seal the Dark Gate to the Dweller's world. According to Nan, the Dweller-in-Darkness
has been impersonating Li so that Wenwu will use the ten rings to open the
Gate. Shang-Chi, Xialing, and Katy join the villagers in training and preparing
for Wenwu's arrival, using outfits and weapons crafted from dragon scales.
Wenwu and the Ten Rings arrive
and attack. Wenwu overpowers Shang-Chi, pushes him into the nearby lake, and
attacks the Gate with the rings. The act allows some of the Dweller's soul
eaters to escape, and the Ten Rings join forces with the villagers to fight them.
The Great Protector revives Shang-Chi and bears him from the lake to battle the
soul eaters. Wenwu and Shang-Chi fight once more, and Shang-Chi gains the upper
hand but chooses to spare Wenwu. The Dweller-in-Darkness escapes the weakened
Gate and attacks Shang-Chi. Wenwu saves Shang-Chi, bequeathing him the rings
before the Dweller-in-Darkness kills him. Shang-Chi, the Great Protector,
Xialing, and Katy slay the Dweller-in-Darkness. Afterward, Shang-Chi and Katy
return to San Francisco, where the sorcerer Wong summons them
to Kamar-Taj.
In a mid-credits scene, Wong
introduces Shang-Chi and Katy to Bruce Banner and Carol Danvers while
researching the rings' origin. They discover that the rings are acting as a
beacon to something. In a post-credits scene, Xialing becomes the new leader of
the Ten Rings, training women alongside men, despite having told Shang-Chi that
she would disband the organization.



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