Guile and Nash head for Barcelona to find any leads of Ken's disappearance, but found nothing. Meanwhile a Russian wrestler named, Zangief is ordered to move in and capture Ryu (who is still unconscious on the beach). But, Ryu wakes up in time to fight Zangief.

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.