Ryu and Ken travel the world to become better fighters and learn new techniques. During their journey, they find themselves caught up in a conspiracy of the mysterious Shadowlaw.

Bison, the ruthless leader of the international terrorist organization Shadowlaw, has been desperately searching for the greatest fighter on the planet for years. He finds it in Ryu, a young wanderer who never stays in one place long enough for Bison to find him. He does, however, get a fix on Ken Masters, an American martial arts champion who studied with Ryu as a child under the same master. Meanwhile, Major Guile of the United States Army is forced to team up with Chun Li from China in hopes of apprehending Bison and putting a stop his international ring of crime.