Shadoloo's leader, Vega (Bison in the English version), sponsors an unpublicized fighting tournament. Shotokan devotees Ryu and Ken revive their rivalry, while foolish former-Shotokan student Dan seeks revenge on Sagat, the man that killed his father. US Army Colonels Guile and Nash (AKA Charlie) attempt to stop Vega's ways, alongside countless other fighters fighting for their personal reasons. Did Ryu find the ultimate challenge? What happened to Nash? And what is the story behind the evil entity known as Gouki (Akuma in the English version)...?