It begins with Ryo Sakazaki training with his friend,Robert Garcia. He is later approached by his father,Takuma,who tells him that his mother was killed in a car accident. After the funeral,Takuma tells Ryo to look out for his sister,Yuri before he left.
Many years later,Ryo works as a construction worker. He notice a group of thugs are harassing an elder woman and quickly fights them off. By the time he returns home,He learned that Yuri has been captured and is told to come to the tournament,owned by Big. He goes there and meets with Robert,who has been sign up to fight.
Before the first round begins,Ryo meets Ryuhaku Todoh and Lee Pai Long,who knew about Takuma. Robert won against Mickey Rogers and Ryuhaku won against Lee. Ryo fought against the bouncer,King,who tells him that she only works for to get pay for her brother's surgery.
Big orders Jack Turner and John Crawley to kill Ryo. During the struggle,Ryuhaku is killed. Robert defeats John and King kills Jack. Ryo quickly saves Yuri before being confronted by Big,who sent out Karate to fight with him. Ryo defeats Karate,who turned out to be Takuma. Big reveals that Takuma has been mind controlled.
Ryo defeats Big and expose his crimes,leaving him to be arrested. Ryo and Yuri reunites with their father before leaving with Robert,but not before Ryo left money for King.