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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.

One day on makunai island (off the coast of Japan) Ryu receives a letter from his pen pal from the United States, Ken. It is an invitation for Ryu to come to meet Ken in San Francisco. Ryu accepts this invitation. When Ryu arrives in San Francisco, Ken picks him up and brings him to his house. Then, at night, Ken decides to scope San Francisco for bars, then Ken flirts with one of the air force pilots' girlfriends and gets into a fight. Ken defeats the pilot, but he and Ryu are unaware of their next opponent.

It is another lazy Hong Kong day for Ryu, Ken and Chun-Li. This time, the 3 decide to go to Hong Kong's malls. Ken and Chun-Li were fascinated, but it easily bores Ryu. Then, Ryu spots an old man struggling to breathe, he aids the old man. Suddenly, a mysterious blue aura radiates from the old man's body, and just like that, the old man feels better. The old man decides to help Ryu, he tells him of a legend of a mystical energy called "Ki", and he even shows Ryu on how to perform a special fighting technique, though Ryu still does not believe in it. Then, he rejoins Ken and Chun-Li. With permission from her father, Chun-Li shows to Ryu and Ken that she is also a powerful fighter.

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.

After escaping from Kowloon Palace, Ryu, Ken and Chun-Li decide to have an easy day in Hong Kong. First, they have breakfast. Then, Chun-Li suggested to go see her friend, the martial arts superstar Fei-Long, perform in his latest movie while it is in still production. To Ryu and Ken's surprise, Fei-Long decides to choose one of them in a fight scene in the movie. He chooses Ken. Then, they fight, and it turns out to be one of the best fight scenes ever shot.

Ryu and Ken take a trip to Hong Kong where their tour guide, Chun Li takes them to an underground fighting arena.

For several unrelenting days, Captain Dorai is hunting down a powerful underground drug ring known as "Ashura". Dorai has already arrested several Ashura members. Now, the Ashura are going to act revenge on Dorai. By doing so, they intend to kidnap his daughter, Chun-Li. One day after school, Chun-Li was spotted by a clown who tried to apprehend her, but, then fought back. Ryu and Ken soon joined to stop the criminals. The Ashura then tried to finish off Dorai at his own home, who was unknowingly waiting for them. Then, Ryu, Ken, Chun-Li and Fei-Long came to help him. They soon realize that some of the criminals are using a dangerous fighting art called "Muay Thai". But, they found a weak spot and finished off the Ashura, for now. Then, Ryu and Ken head for the southeast to discover more about Muay Thai.

Ryu and Ken are still hot on the trail of the Ashura. Now, Captain Dorai comes to help Ryu and Ken. Then, Ryu and Ken were attacked by a sniper. They quickly escape and jump onto a back of a truck to infiltrate the hideout. Then, they are faced with the head of the Ashura. Ryu and Ken fight the leader and his henchmen and defeating them, and thus, down falling the Ashura for good. Then, Ryu meets Sagat who is now released from prison. Sagat finds out that Ryu is finding somebody who knows about the "Ki". Sagat tells Ryu and Ken to go to India to seek the one named, Dhalsim.

Ryu and Ken arrive in Barcelona, Spain to meet up with Chun-Li and her father Captain Dorai to attend a meeting with Interpol. Ryu and Ken were presented with awards for helping Dorai in apprehending the Asura. After that, Ryu, Ken and Chun-Li decide to go around Barcelona. They go to see a bull fight with one of the finest matadors around, Vega. Vega also is somewhat disturbingly interested in Chun-Li, but Chun-Li dislikes his methods of defeating a bull. That night, Vega sneaks into the hotel where Ryu, Ken and Chun-Li are staying, and appears right in Chun-Li's room and kisses her in her sleep. Ken then senses something in her room, wondering who that was.

Ryu and Ken try to stop the treasure hunters from stealing the artifact. But, the hunters tell Ryu and Ken to steal it for them, but they do not want to go in there without Dhalsim's permission, but Dhalsim tells them to go into the forbidden temple. But, as they enter the temple, Ryu and Ken are surrounded by mysterious smoke and are in some kind of strange place, just then, Ryu is faced by a giant living statue, and Ken is faced by another living statue. Ryu and Ken try to fight these statues, but no matter how hard Ryu and Ken fight, they can't defeat the statues. Ryu soon realizes that the statue is really Ken and they were fighting each other. Then, the smoke clears, and obtain the artifact. But, the hunters were not satisfied, but Dhalsim defeats the hunters and attends to Ryu and Ken's injuries.

After Ryu and Ken completed their test in the forbidden temple, Dhalsim decides to take the 2 men under his wing in teaching them about an energy called "Hadou". While learning about Hadou, Ryu experiences a surging of energy in his body. Ryu then tries to shoot it out with the technique he learned from Yo Sen-Ko from Hong Kong. Unfortunately, the energy explodes out of Ryu, meaning that he did not have control. So, Ryu returns to the forbidden temple to try to control the Hadou. After a series of tests, he finally knows how to shoot out the Haodu, what he shot out was called the Hadou-Ken. However, Ryu still needs to learn to control it. But, he and Ken have to continue to their journey, so they leave the village. They receive a note from Chun-Li telling them to head for Barcelona.

After Ryu defeated several prisoners, he is faced with a bug strong prisoner. He is Sagat, the former Muay Thai kick boxing champion. Sagat was not happy that Ryu defeated the prisoners. So, Ryu and Sagat fought. At first, Sagat had Ryu pinned down, then Ryu retaliated. Afgter the fight, Sagat tells Ryu on how he had it all, and why he was in prison, he as well as Ryu was set up by the Ashura. Meanwhile ,Ken finally finds the person who set up Ryu with the drugs. Then, Ryu was free from prison. Now, he helps Ken to defeat the Ashura.

Ryu and Ken are chasing down the Ashura. They have tracked them to Thailand. Unfortunately, no sooner that Ryu and Ken arrive in Thailand, Ryu is arrested for drug possession. Since there is no evidence that Ryu is innocent, Ryu was sent to prison, there he faced the warden, Nuchit. Meanwhile, Ken is trying to search for the man who set Ryu up with the drugs. Then Ryu gets into trouble with the other prisoners and fights with them. Ryu defeats the prisoners, but then, he will face a tough prisoner.

Ryu and Ken head for India. They take a boat up the Ganges river, where they find a doctor with a makeshift hospital who is being harassed by some local people who want the hospital gone. Ryu and Ken help the doctor and then, with some of Ken's fortune, the doctor can build a better hospital. Ryu and Ken continue their journey up the river and find a village where Dhalsim lives. but, Dhalsim refuses to teach them about the "Ki". Then, a group of treasure hunters enter a forbidden temple to steal an ancient artifact, but they suspect that there is a monster that guards the treasure.

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.

M.Bison has chosen Ryu and Ken to a fight to the death. Now, there in a strange dome. Ryu and Ken realize that Bison has a power known as psycho power. Which means that Bison is immune to regular attacks. Once he defeats Ryu and Ken, Bison can conquer the world. Ryu and Ken know that they can not let this happen. They battle Bison. But, Bison uses his special move, the psycho crusher. It seems like Ryu and Ken have no chance of defeating Bison. They quickly realize that they have to use the Hadou to defeat Bison. Meanwhile Guile and Chun-Li resume their fight outside. Then the Cyber-Chip from Chun-Li's forehead is dislodged soon thereafter. Then, Ken uses his Shoryuken to counter Bison's psycho crusher. Then Ryu with his last once of strength, fights Bison and finally uses his Hadou-Ken to defeat him once and for all.

Ryu, who is controlled by M.Bison, has been ordered to fight Ken. But Ken is reluctant and pushes him back. Meanwhile somewhere in the base, Guile fights Zangief, and Guile is experiencing the power of Zangief. In the hospital in Barcelona, Cammy comes in and uses knockout gas on the doctors so she can move in on an injured Captain Dorai. But, what she does not know that Fei-Long is waiting for her and they fight. So, 3 fights happen at the same time.

The 3 fights continue. During the Ryu and Ken fight, Ken realizes that Ryu is not going to stop until he is dead, so he must fight back. In the Guile and Zangief fight, Zangief begins to gain the upper hand but a quick retaliation from Guile is what leads Guile to victory over Zangief. During the Cammy and Fei-Long fight, that fight continues, Fei-Long will not stop. Meanwhile, Nash finds where M.Bison is hiding, he goes in and tries to shoot at Bison, but Bison somehow deflects it. Then, Bison uses his powers again to kill of Nash. Meanwhile, during the Ryu and Ken fight, Ryu begins to do his Hadou-Ken. Ken must counter it with his Shoryuken.

As Guile defeats Zangief, he finds Nash, who was killed by M.Bison. Guile is broken over the death of his friend and partner. With rage, he attacks Bison, but Bison pushes Guile back. Then he orders Chun-Li to attack Guile. Meanwhile, at the hospital in Barcelona, Fei-Long decides to reason with Cammy, he tells her that she has been deceived by Shado Law, then she turns on Balrog. Back at the base, Ryu and ken focus their Hadou and their moves collide, causing a massive explosion, knocking both Ryu and Ken out and dislodging the Cyber-Chip from Ryu's head.

The massive explosion caused by the collision of the 2 Hadou forces is causing the base to collapse. Now, the Cyber-Chip that was planted in Ryu's forehead is dislodged, which means that Ryu is free from Bison's control. Ken tells him what is going on and now go to find Chun-Li and Bison. The 2 find Bison and Chun-Li and were surprised to find Guile there as well. Then, bison tells everybody on the base to evacuate. Because he has chosen the fighters that he wants to fight in an epic battle of Shado Law. He has chosen Ryu and Ken.

Ken finds both Ryu and Chun-Li. Unfortunately, they are being controlled by M. Bison. As Ryu steps into the test arena, Bison wants to use his Hadou-Ken. Ken realizes that he must get Ryu out of there. Meanwhile, Guile and Nash have invaded deep into the base. They decide to split up to cover more ground. They also planted plastic explosives to cover their escape. But it was not long at all before Guile encounters Zangief. Then, Ken decides to use his Shoryuken to break through into the arena. Then he is encountered by Ryu, who is ordered to fight Ken.

With the help of another form of Hadou, Ken finally regains consciousness, then he realizes that he is in chains. Again, with the help of Hadou, he breaks free. Now, Ken knows that he has to find Chun-Li. Then, Ken realizes that Ryu is captured by M. Bison as well. Meanwhile, Fei-long goes to the hospital where Captain Dorai is, but, there is nothing that Fei-Long can do right now. Then, Ken uses the Hadou again to begin his exploration of his friends, it is Ken's powerful move, the Hadou Shoryuken. However, Guile and Nash witness this event and decide to move in early.

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.

Chun-Li continues to fight with M. Bison, but he somehow knocks out Chun-Li. Ken (while sedated) experiences some of the fight. Now, that Bison has both Ken and Chun-Li, he sends a ransom video to Ken's father. This is when Mr. Masters calls on several air force pilots to find Ken. It is Guile and his partner Nash. Guile quickly realizes that they are the same Ryu and Ken he fought previously. But, he agrees to find them. Meanwhile, a Shado Law agent (who is posing as an Interpol agent) is beginning his mission to finish off Captain Dorai. He plans to do so with the help of a British delta force agent known as Cammy White, Balrog has set up her hotel room right next to Dorai's.

The next morning in Barcelona, Ryu, Ken and Chun-Li are trying to find out who was in Chun-Li's room on the previous night. Then, the trio receives an invitation to a formal ball. Ryu was not interested and decided to stay and train on his Hadou-Ken, while Ken and Chun-Li accepted the invitation. Then during the ball Vega shows up and Chun-Li is somehow dazed at Vega's appearance. Ken found out that it was Vega that was in Chun-Li's room and doped her with some drug. Vega asks Ken to fight him, Ken accepts. They fight, then Ken discovers that he is going to have to watch for Vega's deadly claw glove.