For the events on Earthrealm leading up to Mortal Kombat: Deadly Alliance, Hsu Hao was of prime importance. His superior, Mavado, gave him orders to act as a Chinese Secret Militant for the Special Forces and aid them in completely destroying the Black Dragon clan. Hsu Hao carried out his instructions without question and aided the U.S. Special Forces for years until the entire Black Dragon clan were seemingly eradicated, after the death of Jarek. Hsu Hao was called back to the Red Dragon headquarters at Charred Mountain but later received orders from Mavado to stay within the Special Forces HQ. He was then instructed to destroy their underground base and with it, their only means of inter-realm travel. He armed a miniature nuclear weapon and just escaped through the portal before it blew up.
As a result of his betrayal, his former superior at the Special Forces, Jax, who just barely escaped with his life, had a score to settle with him. After Mavado captured and imprisoned Kano, Mavado sent Hsu Hao to kill Shang Tsung under orders from Quan Chi. On his way to Shang Tsung's palace he was cornered and seemingly killed when his artificial heart was ripped out by Jax.
Hsu Hao inexplicably returns in Mortal Kombat: Armageddon. However, it is possible that he may have been resurrected by Shinnok due to his association with Daegon. There are other rumors saying that Hsu Hao's dead body was found by Onaga in front of Shang Tsung's palace who resurrected him and made him his secret spy, but Onaga's control over Hsu Hao was short lived when Shujinko killed him and Nightwolf trapped his soul in the Netherealm, making Hsu Hao free and alive again to return back to the Red Dragon clan. His ending states that Hsu Hao was killed on Blaze's death explosion and desended into the Netherealm, where he formed into a cold, emotionless demon. He defeated Shinnok and his minions, and became the new ruler of the Netherealm.