The Shirai Ryu was a ninja clan established in Japan by a former Lin Kuei warrior named Takeda. He began teaching members of his newly formed clan the secrets of the Lin Kuei. Because of his treachery, the two clans became bitter enemies. It is believed the Shirai Ryu wore yellow to mock the Lin Kuei's style of dress.

Before the events of Mortal Kombat 1, the Lin Kuei Grandmaster was approached by a sorcerer named Quan Chi. He wanted to hire the Lin Kuei to steal the Sacred Map of Elements from a Shaolin Temple. Naturally, the Grandmaster chose his most skilled warrior Sub-Zero for the job. Little to Sub-Zero's knowledge, however, was that Quan Chi had also acquired the Shirai Ryu's services, in case Sub-Zero failed.

While retrieving the map, Sub-Zero was confronted by Hanzo Hasashi, and the two battled, with Sub-Zero being victorious in the end. When he had returned to the Lin Kuei hideout, Sub-Zero had learned that as payment for his services, Quan Chi agreed to destroy the Shirai Ryu and kill the families of its members. Along with the death of Hanzo Hasashi at the hands of Sub-Zero, the Shirai Ryu was, for all intensive purposes, wiped out for good.