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In December, Ambrose started a feud with Kevin Owens after Ambrose became the new number one contender for the Intercontinental Championship, which was held by Owens.
Ambrose won the Intercontinental Championship for the first time, after defeating Owens, at the TLC: Tables, Ladders and Chairs pay-per-view on December 13.
On the December 22, 2015 episode of SmackDown, Ambrose defeated Owens and Ziggler in a triple threat match to retain the title.
On the January 7, 2016 episode of SmackDown, Ambrose and Owens faced off again, though the result was a double countout.
At the 2016 Royal Rumble, Ambrose defeated Owens in a Last Man Standing match to retain the Intercontinental Championship, and was the runner-up in the Royal Rumble match for the WWE World Heavyweight Championship.
The following night on Raw, Ambrose was announced as part of a triple threat match against Roman Reigns and Brock Lesnar at Fastlane, with the winner going on to face Triple H for the WWE World Heavyweight Championship in the main event of WrestleMania 32.
In the weeks preceding the match, Ambrose repeatedly taunted and goaded Lesnar.
On the February 15 episode of Raw, Ambrose was forced to defend his Intercontinental Championship in a fatal five-way match and lost the championship when Kevin Owens pinned Tyler Breeze.
At Fastlane, Ambrose lost after being pinned by Reigns.
The following day, Ambrose was attacked by Lesnar upon arriving at the arena.
This set up a confrontation on Raw, where Ambrose would return driving an ambulance, only to be attacked again, and then Ambrose challenged Lesnar to a No Holds Barred Street Fight match at WrestleMania 32, which Paul Heyman accepted on Lesnar's behalf.
On the February 29 episode of Raw, Ambrose interrupted Triple H, issuing a challenge for his WWE World Heavyweight Championship.
It would later be announced on WWE.com that the match would be taken place at Roadblock.
During the main event, Ambrose hit Dirty Deeds and pinned Triple H for a three count, but as Ambrose's foot was under the rope, it was void and Ambrose later lost the match.
Ambrose then continued his feud with Lesnar cutting some promos on him, continuously challenging him, and on the March 14 episode of Raw, hardcore legend Mick Foley gave Ambrose his signature barbed wire baseball bat.
The following week on Raw, another hardcore legend, Terry Funk, gave Ambrose a chainsaw.
Ambrose ended up losing the match between the two of them at WrestleMania 32.
In April, Ambrose began a rivalry with Chris Jericho after Shane McMahon cancelled The Highlight Reel and replaced it with The Ambrose Asylum.
This resulted in a match at Payback, where Ambrose would defeat Jericho.
The following night on Raw, Ambrose invited Stephanie McMahon on The Ambrose Asylum and confronted her about being insincere with her recent nice demeanor, and rather than Stephanie give an answer, she cancelled Ambrose's show and reinstated Jericho's Highlight Reel.
The two then attacked each other, ending with Jericho smashing Ambrose's potted plant "Mitch" over his head and continuing their feud.
After Ambrose destroyed Jericho's light-up jacket and Jericho put Ambrose in a straitjacket, he challenged Jericho to an Asylum match (a steel cage match with weapons hanging above the cage) at Extreme Rules, where Ambrose won after hitting the Dirty Deeds on Jericho onto a bed of thumb tacks.
