Introduction
A former Shaolin Monk and a member of the White Lotus society, he is the last descendant of the great Kung Lao who was defeated by Goro 500 years ago. Realizing the danger of the Outworld menace he joins Liu Kang in entering Shao Kahn's contest.
Move List
Close HP : Headbutt [Hits crouch block]
Teleport : D, U
Press Punch or Kick once you come up behind your opponent
Dive Kick : D+HK in the air 16%
Hat Throw : B, F, LP 14%
You can move the hat after you throw it with U or D.
Spin Shield : U, U, LK, LK 22%
The Spin becomes "active" after the second button press. Keep tapping LK to keep spinning.
Kung Lao is a great character if used properly - the torpedo kick is very good as it throws your opponent's timing off and it is hard to uppercut. A blocked normal torpedo kick allows an uppercut, but a hop-torpedo does not, and is so strange that most people will not know how to react to it. Also, Kung Lao's standing HK can always knock someone out of the air, like the ninjas' roundhouse.
Finishers
Fatality 1 : (Sweep) F, F, F, LK
Kung Lao removes his hat and slices his opponent vertically.
Fatality 2 : (Full Screen) Hold LP, B, B, F, Release LP
Press U right before the hat hits your opponent to complete the Fatality.
Kung Lao throws his hat, which decapitates his opponent.
Babality : B, B, F, F, HK
Friendship : B, B, B, D, HK
Kung Lao pulls a rabbit out of his hat.
Pit II/Tomb : F, F, F, HP
The Basics
Pros: -Teleporting is a bit easier than Rayden, and sends him flying up into the air, making it easy to kick on the way up and back down.
-Kung's hat can be thrown and it has quite the rate of speed, being one of the fastest projectile weapons in the game.
-Kung Lao's spin will draw in enemies close to him and do some damage, which can be much better than a block if timed correctly.
-Using the diagnal kick can be great for mind games against your opponent as you fly back first, and then come down at a 45 degree angle with a kick.
Cons: -Timing and proximity are really important for the spin attack, otherwise you run the risk of getting hit by a projectile.
-While the teleport can be useful, it's best not spam it, lest your opponent duck and uppercut you right out of the sky.
-His repetoire against the two final enemies of the game is really limited in terms of using attacks to gain the upper hand. You'll have to not rely so much on special attacks and a little moreso on luck to defeat them.
-Kung Lao's hat throw has an extremely long cool down time, leaving him open if your opponent happens to jump over it or duck under it.
Advanced Strategies
Uppercut: Good
Jump Kick: Weak
Roundhouse: Good
This guy is cool. Not only does he look cool, he is a good fighter. His Hat Throw is steerable, which is good for hitting ducking or jumping opponents. It comes out fairly slow though, keep that in mind. While doing the Whirlwind Spin, he can not be hit by anything other than a missile weapon or the Ground Dmash. It takes a while to fire up, and there is a period where the Spin speeds up and slows down, in which you are vulnerable to regular hits. You must either kick or punch after you do the teleport, otherwise you are likely to get hit. The Aerial Kick is a good suprise weapon. Don't abuse it though, or you will get abused. Try jumping away from your opponent then doing it. Use it sparingly and when least expected.
Combos
Basic Combos
Jump Kick - Hat Throw
Jump kick your opponent below the waiat and throw the hat. Guide the hat low so it hits the opponent.
Jump Kick - Flying Kick
Use this against the computer. After jump kicking the opponent, jump stright up and execute the flying kick jsut as the opponent stands.
Jump Kick - Energy Spin
Jump kick your opponent in the corner and execute the energy spin.
Energy Spin - Jump Kick
When the opponent is hit by the energy spin, Kung Lao has time to do a jump kick.
Advanced Combos
1. (mid-screen) Spin, JP, Whiff Dive Kick, HP, Hat Throw (4 Hits, 54%)
2. (mid-screen) Spin, JP, Whiff Dive Kick, JK, Dive Kick (4 Hits, 65%)
3. (mid-screen) aaSpin, JP, Whiff Dive Kick, JP, HP, Teleport Kick (5 Hits, 69%)
4. (corner) Spin, JP, JP, HP, Spin (5 Hits, 72%)
5. (corner) Spin, JK, Dive Kick, HP, Spin (5 Hits, 84%)
6. (corner) JK, SUJK, Dive Kick, SUJK, Dive Kick (5 Hits, 88%) 
7. (mid-screen) aaSpin, (JP, Whiff Dive Kick) x 3, Spin, Hat Throw (6 Hits, 90%)
8. (mid-screen) aaSpin, (JP, Whiff Dive Kick) x 2, (SUJP, Whiff Dive Kick) x 2, HP, Teleport Kick (7 Hits, 94%)
9. (mid-screen) aaSpin, (JP, Whiff Dive Kick) x 3, Spin, JK, Dive Kick (7 Hits, 100%)
10. (away from corner) aaSpin, (JP, Whiff Div Kick) x 2, SUJK, Whiff Div Kick, HK, HK (6 Hits, 100%)
11. (mid-screen) aaSpin, (JP, Whiff Div Kick) x 2, (SUJP, Whiff Div Kick) x 2, SUJK, Div Kick (7 Hits, 100%)
12. (mid-screen) aaSpin, (JP, Whiff Div Kick) x 2, (SUJP, Whiff Div Kick) x 2, Uppercut (6 Hits, 100%)
13. (against corner) aaSpin, JP, Whiff Div Kick, Spin, JP, Whiff Div Kick, SUJK, Whiff Div Kick, aaHP, Hat Throw (7 Hits, 100%)
14. (far from corner) aaSpin, JP, (Whiff Div Kick, JP) x 2, Spin, JP, Whiff Div Kick, Spin, JK, Div Kick (7 Hits, 100%)
-Infinites
1. (against the corner) aaSpin, JP, Whiff Div Kick, JP, Whiff Div Kick, JP, Whiff Div Kick ...
2. (corner) otg Div Kick, Div Kick, Div Kick, Div Kick ....