Paul entered, and while he was again successful in defeating Kuma, he was still was unable to prove himself to be stronger than Kazuya traffic on the Japanese highways prevented him from reaching the venue in time, forcing him to forfeit. Two years passed before news reached Paul of a second tournament.

During the tournament, Paul defeated a bear named Kuma, but was unable to defeat Kazuya when they fought. When Paul heard the announcement of The King of Iron Fist Tournament, he entered, seeing the opportunity to face his rival, Kazuya, and prove himself to be the best.

Paul trained with Marshall Law, who would go on to become his good friend, and Lee Chaolan, and remained undefeated in battle until he fought Kazuya Mishima to a draw. Something of a drifter, Paul had no real career, instead making money by streetfighting and taking occasional work as a bouncer while he pursued his real passion: proving himself to be the toughest fighter in the universe. Paul Phoenix is a tough American fighter whose battle-spirit was first kindled by his watching 'Bear Killer Willy Williams' as a child.

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