Hoji first asks Wang to help restore his physical body, then guides him toward a contraption called a 'Chi cannon', which supposedly has enough power to destroy the dragon.

Amidst Motoko's ritual, Hoji is revived, prompting Wang to disrupt the ritual to save his friend. The two of them seek out Motoko, a witch who knows of a way to defeat the dragon using the residual energy in Hoji's mask. Wang's former nemesis, Orochi Zilla, convinces him to continue fighting. Wang himself has become a recluse, wallowing in depression due to his failure to defeat the dragon. Some time after Lo Wang released an ancient dragon by accident, global civilization has been almost wiped out due to the presence of the dragon and the demonic beings that overrun the world. The game features more linear levels and a more streamlined upgrade system when compared with Shadow Warrior 2, though it introduced new movement options for Lo Wang, such as giving him the option to wall run, double jump, air dash, and utilize a grappling hook to quickly transverse between platforms and vertical surfaces. As the player progresses in the game, they receive new weapons and gadgets which aid them in combat, all of which are meant to be unlocked and available by the time the player reaches the mid-point of the campaign. They can also use the environment to their advantage. At close range, players can execute wounded enemies. In addition, he also wields a katana, which is limited to close-quarters combat. In the game, Lo Wang has access to a large arsenal of firearms which can be used to defeat enemies. Like its predecessors, the game is a first-person shooter and the player assumes control of Lo Wang, the series protagonist. The sequel to Shadow Warrior 2 (2016), the game released for Microsoft Windows, PlayStation 4 and Xbox One on Maand was released for PlayStation 5 and Xbox Series X/S on February 16, 2023. Shadow Warrior 3 is a first-person shooter game developed by Flying Wild Hog and published by Devolver Digital.

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