After he is fired from his job as a janitor, Zangief hails a taxi cab with Dhalsim as its driver. The two talk about the glory days of Street Fighter and decide that a new tournament should be held.
Zangief and Dhalsim try to convince the now paraplegic M. Bison to train them. Initially reluctant, Bison agrees, but only if two other former Street Fighters are found.
Finding the two former street fighters M. Bison requested, Vega and the deceased E. Honda, Zangief and Dhalsim also run into Blanka, who wants nothing to do with the new tournament.
Accompanied by Zangief, Dhalsim and Vega, M. Bison seeks to convince Chun-Li to join in with the new tournament but faces opposition due to Bison killing her father.
As Ken, Guile and Balrog (who no one remembered) all unexpectedly join the M. Bison and the others to form another street fighter tournament, many of the participants begin to train their powers.
After being mocked for no longer being able to Hadouken (shoot a fireball from his hands) by Blanka the now rich Ryu, both of whom decide to join the tournament, Ken does some soul-searching only to discover a shocking event and a surprising revelation.
After discovering Ryu was being imprisoned in the basement of Capcom for five years, he explains to Ken the plot devised by E. Honda (who was posing as Ryu), Blanka and Capcom CEO, Donovan Corbett.
The Street Fighter tournament begins with a match between Chun-Li and Blanka. Meanwhile, Ken must race to the tournament to warn the others about the Capcom's evil plot.
Ryu faces off against the corrupted Street Fighter E. Honda in a fight to the death.