When Ryo and Ren return to Hotel Niaowu, they find a letter from Feng saying that if Ryo wants to save his 'little girlfriend', he should come to the old castle and bring the Phoenix Mirror with him. She tells them that the gang are in the old castle and abducted Shenhua, even smiling as she says this. She vaguely tells them that the land belongs to her, so she had them leave. Ryo and Ren ask where the Red Snakes went. When Ryo and Ren plan on fighting the Red Snakes leader again, they find Feng Li alone in their warehouse hideout. Ryo tries to pinpoint a weakness in the leader's style, and has experts Qiu Hsu and Xianzi Bei assist him. Later, Ryo has Ren help him try to fight the Red Snakes leader, but the two are unsuccessful. Ryo tries to defeat the gang but is unable to defeat their leader, Longqi Ge. Ryo discovers the Red Snakes hideout in a warehouse located by the hotel. Ryo meets Wuying Ren again by chance, who has come to Niaowu in search of treasure. Along the way, they encounter a mysterious woman, Feng Li, and encounter a criminal gang called the Red Snakes who have been terrorizing shopkeepers.

Ryo and Shenhua stay at Hotel Niaowu and search for traces of her father. The second area, Niaowu, is a riverside village with lots of shops, souvenir stores, hotels and temples. Ryo and Shenhua also learn more about Bailu's history, such as how the Phoenix and Dragon Mirror were created by Yuan's grandfather to welcome a Chinese dynasty visiting Bailu. Ryo and Shenhua are also attacked by familiar face Chai, but Ryo thwarts him away. Shenhua interrogates Yanlang and learns her father and Xu are in Niaowu. With the help of martial arts expert JiuSi Sun, Ryo defeats the thug leader, Yanlang. Ryo and Shenhua discover that a group of thugs have attacked and raided several stonemasons in search of the Phoenix Mirror, leaving their houses a mess. Shenhua begins to suspect that perhaps Lan Di and the Chi You Men abducted her adoptive father, Yunshen Yuan, which would explain his sudden mysterious disappearance, and so she intends to rescue him, her motives overlapping with Ryo's. Shenmue III begins in Bailu Village in Guilin.

The story continues as Ryo and Shenhua start off on a new journey that will take them farther into enemy territory, deeper into mystery. There he meets a new travelling companion, Shenhua Ling, and learns of a legend from her village that has foretold their path together.

Ryo Hazuki has made his way to Guilin, China in search of his father's killer, Lan Di.

6.2 Deluxe Edition/Pre-Order Exclusive DLC.

Shenmue 3 soundtrack