Sifu has five hidden Talismans, each one representing an element: wood, fire, water, metal, and earth. There’s one to obtain in each level, but doing so can be a bit tricky. It also involves spoilers, so consider this your spoiler warning before we tell you how to get the third Talisman.
Upon beating Yang and finishing Sifu, you’ll be told that true victory is in showing mercy. The question is, how do you show it? For the Water Talisman, you’ll start by revisiting The Museum and fighting Kuroki. Head up the elevator and face her, using whatever tactics you wish to beat her in the first phase of the fight — it’s in the second where you’ll need a new strategy.
Before, you could take out Kuroki by whittling down her health or filling up her structure meter, but you need to focus on the latter this time. Be mindful of full-on attacking too often — focus on parries and counters, or you’ll end up killing her outright, which is not what we want to do here. Instead, fill up the structure meter until she breaks, but do not finish her off. Instead, let her recover. When she does, her structure meter will remain mostly full.
Get in a few more parries and counters to break it again, and you’ll be given a new prompt to spare her. Do so, and you’ll walk away with the Water Talisman in your possession.
