As Ken defeats an air force pilot in the bar, the pilot's commander going by the name of Guile steps in and sees what Ken has done. However, Ryu wants to have his turn at kicking butt. However, Guile dodges Ryu's attacks and defeats Ryu easily. Ken, angry and out for revenge on Guile, Ken searches every air force base to find Guile, Ken eventually finds him and confronts Guile. Unfortunately for Ken, he suffers the same fate as Ryu. Then, both Ryu and Ken realize that Guile is nothing like any of the opponents that they are use to fighting in karate tournaments, they quickly realize that Guile is a Street Fighter and does not follow any rules or codes while fighting. So, both Ryu and Ken decided to venture the world to learn the way of the Street Fighter. They are going to start in Hong Kong.

Ryu, Ken and Chun-Li try to escape from Kowloon Palace. Then, they are being attacked by street fighters from all sides. So, they realize that they have to fight in order to survive. then, Chun-Li's father Captain Dorai, comes in to assist them.