The story begins in the neon-soaked streets of Hong Kong, where underground fighting tournaments have become a global obsession. Ryu, a quiet and disciplined fighter from Japan, wanders the world searching for inner peace after years of training under his late master, Gouken. Haunted by the violent power known as the Satsui no Hado within him, Ryu avoids competition, fearing that using his full strength will destroy his soul.

Meanwhile, Ken Masters, Ryu’s former rival and closest friend, has embraced fame as a martial arts champion and media icon. But Ken’s success hides a deeper guilt — he feels he abandoned Ryu and their shared code of honor. When mysterious invitations are sent to the world’s greatest fighters for the World Warrior Tournament, Ken sees it as a chance to reconnect with Ryu and rediscover what being a fighter truly means.

Chun-Li, an Interpol agent, goes undercover in the tournament after discovering that the event is secretly controlled by the criminal organization Shadaloo, led by the ruthless M. Bison. Shadaloo’s goal is not just entertainment but domination — they are experimenting with a technology that can harness fighters’ spiritual energy, turning their skills into weapons of war.

As the tournament unfolds across global arenas — from Bangkok rooftops to icy Russian bases and Amazonian temples — alliances form and rivalries ignite. Guile, an American special forces officer, enters to avenge his fallen comrade Charlie, whose death is tied to Bison’s experiments. Blanka, once human, is revealed to be that very comrade, mutated by Shadaloo’s genetic tests. The discovery fuels Guile’s rage and adds emotional weight to his fight.

Ryu and Ken reunite only to find themselves on opposite paths — one fighting for balance, the other for redemption. Their bond is tested when Bison attempts to corrupt Ryu, using the Satsui no Hado to awaken a dark, uncontrollable power. In the film’s explosive climax, Ryu faces both Bison and his own inner demon. With help from Chun-Li and Ken, he learns that strength isn’t about rage or power, but discipline and compassion.

The finale takes place in a shattered arena lit by storm and lightning. Ryu channels pure energy, delivering the iconic “Shoryuken” that destroys Bison’s psychic core. But victory comes with loss — the arena collapses, and Ryu disappears into the flames, leaving behind only his tattered headband. The world believes he is gone, but Ken knows otherwise. The final shot shows Ryu walking a lonely mountain path, ready to continue his journey — not as a weapon, but as a warrior seeking peace.