On an Island off the coast of Portugal, M. Bison'a scientists have completed their latest invention, the Cyber Chip, which is implanted to a person's forehead. Once implanted, this gives Bison the ability to control the subject, he can have complete control over the subject as well, over their actions, their thoughts, even their emotions. Meanwhile, Guile and Nash wait patiently until night to move in on the island where Bison is keeping Ken hostage. As for Ken, he slowly regains consciousness. Meanwhile, Fei-Long arrives in Barcelona, only to find out what had happened to Captain Dorai. He swears to find the person who killed him.

Ken is free from capture and is now infiltrating M. Bison's secret base to find his friends Chun-Li and Ryu. Meanwhile, Guile and Nash are beginning their own infiltration. At the hospital in Barcelona, Balrog has received information that captain Dorai is dead. But Balrog wants to be sure of that, so he orders Cammy to kill him while at the hospital. Back at the base, Ken has entered and finds Chun-Li (who is now a cyber warrior). He witnesses her killing a test soldier.