The Subway Fight was the first and one of the most well-known fights between Neo and Agent Smith during the Machine War. This battle marked the first of the events that led to Neo's awakening as the One and Smith's deletion as an Agent. Neo cemented his rivalry with Smith and established himself as the opposing force against Smith to balance out the Matrix.
They're not out yet.”
― Agent Smith[src]
Having successfully rescued Morpheus from capture by the Agents, Neo and Trinity contact Tank for an exit. They are directed to an abandoned subway station, observed by a homeless man in the shadows. Morpheus is the first to answer the call. The homeless man is astonished at Morpheus' exit and is then assimilated by Smith.
Trinity tentatively explains to Neo she has something she wants to tell him, but instead takes the next call, just as the homeless man is possessed by Smith. As Trinity raises the phone to her ear, she spots Smith approaching, but it's too late. Smith destroys the phone with a bullet just as Trinity goes through. Neo is left alone facing Agent Smith. Choosing fight over flight, Neo bravely turns to face Smith.
I'm going to enjoy watching you die... Mr. Anderson.”
― Agent Smith to Neo[src]
As if in a Western duel, the two stand facing each other for a moment, then without warning Neo draws his gun and fires, running toward Smith. Smith follows suite and runs to meet Neo, both firing towards another.
They leap and meet each other in the air, taking hold of each other's weapon, diverting their aim. They land with both of their empty guns at the other's head. They then jump to their feet and cast aside their weapons. Smith then cracks his neck and Neo charges at him to begin their fight.
Neo attacks, coming at Smith with a series of punches and kicks. Smith demonstrates his superiority, deflecting, blocking and parrying each blow and knocks Neo back against a stone column. Neo dodges Smith's concrete-shattering punches and returns with a neat array of kicks. After performing a spinning kick to Smith's face, Neo shatters one of the lenses of Smith's glasses.
Angered at being defied, Smith throws away the glasses and, after vowing that he will enjoy observing Neo's death, comes at Neo with a hacking offense that displaces Neo's parries and smashes him against the wall, making a sizable crater. Neo is quick to get up and go on the offensive again. Neo manages to punch Smith several times in his chest, but Smith shows no sign of pain or effect.
During the fight, Smith grabs Neo to land three punches to Neo's ribs and bends his body forward to allow a heel kick to be performed to Neo's face. Neo countered back by blocking Smith's next punch and offensively attack him in the chest.
However, Smith expertly turns the tide and sends Neo flying backwards across the platform floor with a punch to the chest. Neo spits blood from his mouth as Smith smirks, but Neo stands and beckons for Smith to come at him, mirroring Morpheus' technique.
Smith runs to meet him, but is forced backwards this time from Neo's continuous attacks. Once again though, Smith disarms him and throws him into the wall. Not giving Neo a chance to recover, Smith delivers a lightning-fast pummel of punches to Neo's abdomen and throws him into the ticket booth.
Hearing a train coming, Smith takes Neo and throws him again into the wall on the other side of the station, putting him on the tracks and down for the count as the rushing train is heading their way.
Loop Train Collision
Goodbye, Mr. Anderson."”
"My name...is Neo!
― Smith and Neo[src]
To ensure the death of his adversary, Smith joins Neo on the tracks and takes him in a rock solid kneeling choke hold. As the train nears, Smith, after taunting him about how the gradually increasing train sounds are the sounds of the inevitability of Neo's impending demise, bids "Mr. Anderson" farewell, but Neo is not done yet.
Defying physics, Neo launches himself into the air, smashing Smith into the ceiling, freeing himself from the hold, although not before defiantly correcting the Agent that he now calls himself Neo and is no longer Thomas A. Anderson. They land back on the tracks with the train bearing down on them. Neo nimbly backflips up and away from the train in time to see Smith be hit by the machinery and their duel ends.
As Neo begins to walk away, the train is stopping midway on the tracks. Before Neo leaves the subway platform, he turns around to see another possession of Smith exit from the train doors and glares upon Neo with an angry expression on his face.
Noticing that Smith has returned, Neo ran up the subway entrance stairs and a chase between Neo and agents, Smith, Brown, and Jones emerge as Neo sprints around the areas of Mega City in search of an exit. While fleeing, he also proceeded to steal a pedestrian's cell phone to contact Tank (whom he called Mr. Wizard in reference to Wizard of Oz) regarding the nearest Exit, with the pedestrian promptly morphing into Agent Brown.