The Mortal Kombat series is notorious for legendary rumors and speculation in regards to the many secrets hidden within each entry in the franchise. Over the years, the developers have often taken these unfounded rumors and made them a reality. The two most famous examples of this are Animalities, which were rumored in Mortal Kombat II and a reality in MK3, and Ermac, who began as a glitch in the original MK and became a full-fledged character later on. In the pre-Internet world in which the original Mortal Kombat existed, the spreading of rumors was astounding.
One of the more popular rumors of Mortal Kombat II was the extremely rare appearance of a fourth palette-swapped, female ninja. Her appearance was said to be identical to Kitana, Mileena, or Jade, but her attire was red in color, similar to Ermac before her. Many players began referring to her as either Skarlet or Ruby. She never was truly an official character within Mortal Kombat II, or any other entry in the series.
Years later, rumors stirred about the red female ninja again with the release of Mortal Kombat: Shaolin Monks. The versus mode in the game featured several characters other than the title characters of Liu Kang and Kung Lao. One of these extra characters was Kitana, and her alternate outfit was red.
Skarlet is one of Shao Kahn's creations, made by the blood of various warriors and fused together with dark magic. Shao Kahn assigns Skarlet the task of secretly spying on Quan Chi to uncover his true intentions in the Mortal Kombat Tournament and if there is any plot against him.
Skarlet appears throughout the Story Mode but only as a background character with no dialogue or any character interactions.
In Skarlet's Mortal Kombat arcade ending, Skarlet is a loyal servant to Shao Kahn ; however she is taken over by Quan Chi's sorcery and is made to attack and kill Shao Kahn. After defeating Shao Kahn, Skarlet regains consciousness and realizes what she has done to her master. Enraged, Skarlet absorbs Shao Kahn's power through his own blood and she alone faces the Brotherhood of Shadows and defeats Quan Chi. Skarlet then disappears awaiting the time when Shao Kahn would once again come back to life...