Ryu travels from Japan to America to see his childhood friend,Ken Masters,whom he has been training with. He was told about a world fighting tournament. Other fighters are Edmond Honda,a sumo,who was also from Japan, Blanka,a brazilian beast like mutant who was raised in the jungle,two American soldiers,Guile and Charlie Nash,Chun-Li,a Chinese martial artist,Zangief,a professional wrestler and sambo fighter from the Soviet Union,and Dhalsim,
a fire-breathing yoga master from India.
A Host, announced that they will be facing eachother and 3 powerful fighters who are working for organization, Shadaloo. The three are Balrog,F.A.N.G.,and Vega. Blanka and Zangief went first. after Zangief has lost to Blanka, Honda is next and wins against him. Up Next is Dhalsim,who has beaten him. Bison sends in Balrog. Dhalsim received several punches from Balrog before he is fatally beaten.
Chun-Li tells Ryu that her father was taken from her. The Fighters realize that the Shadaloo has set up the Tournament. Ryu faces off with Vega and defeats him. The bombs set by Guile and Nash goes off. Ryu and the others fought with the Shadaloo Soldiers. Zangief,Blanka,and Honda helps them face off the Troops. Ryu,Ken,Chun-Li,Guile,and Charlie confronts Bison. It is revealed that Bison was the one who killed Chun-Li's Father. Balrog appears and attacks them. Chun-Li fight against him while Ryu,Ken,Guile,and Charlie fights with Bison.
Chun-Li manage to kill Balrog While Ryu and the fighters defeats Bison. The Shadaloo Drone appeared and open fire. Charlie pushes Guile out of the way and gets shot instead and fell into the ocean. Ryu uses his Hadoken move,obliterating Bison.
As Guile mourns Nash,The Fighters celebrates Ryu's honor. Ken tells Ryu that he will be joining Guile as his new partner.