Around Christmas in the 1980s, Johnny Cage is an action star and martial artist chasing a real break with his next movie, Ninja Mime. The film’s producer, Brian Van Jones, grows uneasy as his costar, Jennifer Grey, has vanished, pushing him to seek her out along with his loyal assistant, Chuck Golden. When they arrive at her mansion, Cage stumbles into a heated clash between two women: Ashrah and Kia, who are fighting over a mysterious scroll. Cage finds himself pulled into their duel, and the trio narrowly escapes when Jennifer’s house is blown up by a planted bomb.
On the highway, the altercation between Ashrah and Kia spills into traffic as Cage hijacks a tour bus to pursue them. In the chaos, Kia is killed after Ashrah ejects her from Kia’s car. With the help of Golden, Cage recovers the scroll, which later reveals itself to be a star map of Los Angeles with Greek text on the back. Meanwhile, Ashrah returns to the White Lotus Society to report to Raiden and is urged to recruit Cage for the looming battles ahead.
Back in the city, Cage is sidetracked by his agent, who proclaims that > "The Big Man" wants to hire him for a superhero film. The agent, David Doubldy, lures Cage into a secret Hollywood club gathering at the Magical Mansion, where glamour and danger blend. The two collide, and Cage learns that Doubldy is a demon; he defends himself and kills him. With the police reluctant to help, Cage and Golden decide to investigate on their own and head to the Mansion. Inside, Cage is drawn into the party, where he is guided by Jataaka away from danger.
Not long after, Ashrah warns him that Jataaka and Kia are two of three assassins aligned with the Brotherhood of Shadows, whose goal is to summon their god, Shinnok, to conquer Earthrealm. Cage and Ashrah manage to defeat Jataaka with Golden’s help, who reveals that the Brotherhood intends to use the scroll and the “blood of a god” beneath the Oriental Theatre to open a portal to the Netherrealm. Before they can destroy the scroll, Sareena emerges—revealing herself as a demon who was cut off from the Netherrealm long ago—capturing Cage and the others. Sareena explains how she and other demons manipulated Cage’s film career to prepare him as a sacrifice for Shinnok. Sareena makes it clear that her plan to bring Shinnok to Earthrealm hinged on Cage’s blood.
Rescued by Ashrah and Golden, Cage confronts Sareena and the other demon forces, while Golden discovers that Ashrah is a demon who has renounced her dark past and chosen humanity. They free Cage, and Sareena wastes no time in using Cage’s blood to open the Netherrealm portal, allowing Shinnok to stride into Earthrealm. Golden proposes a plan: retrieve Shinnok through the rift and seal him back with the scroll’s spell. A climactic street battle erupts near the Oriental Theatre as Cage fights Shinnok with mystic power, while Golden and Ashrah battle Jones and Sareena in their true demonic forms. Golden knocks Jones back into the portal and returns Ashrah’s sword to her, enabling Ashrah to strike down Sareena. With fanfare from the crowd, Cage finally pushes Shinnok back into the portal and Golden casts the spell to close the gateway, cutting off demon access to Earthrealm. The city celebrates Cage as a hero, and he shares a kiss with Ashrah.
In the aftermath, Golden presses onward, beginning martial-arts training and eventually becoming his stunt double in video games, earning the nickname Mokap. Despite his on-screen triumph, Cage’s fame begins to wane, and he is later seen packing his car to shoot a new film on a remote island, suggesting the unpredictable twists of a life spent chasing the next blockbuster. Meanwhile, Ashrah remains focused on her mission to vanquish demons and shape her future as a human, leaving Cage to navigate the uncertain path of lasting superstardom.