A small group of men stigmatized for killing the gang leader tries to survive the group and take revenge on the man who killed them, while being involved in the conflict between the two major powers of Kanto and Kansai. The second movie of the live action adaptation series.

Yakuza Zombie opens with an introduction to a mysterious Yakuza graveyard deep in the forest, and a story of the baddest Yakuza of them all, Naruo Ryuuji (shown in cut scenes played by Ozawa Hitoshi). Naruo Ryuuji was a fearless killer who eventually got into heroin and, exactly like Ishimatsu Rikuo in Takashi Miike's Graveyard of Honor, eventually leaps to his death from the top of a prison, claiming he'll be back. I'm assuming this is a reference to real life crazy Yakuza Ishikawa Rikio, whom the original Graveyard of Honor was based on. It's established that the corpse of the fierce Yakuza Ryuuji is buried in the graveyard beneath a marker with the Japanese characters "Jingi" (Honor), and then we are taken to the modern day.

A young man working as a cameraman in Tokyo is visited for three days by his parents from the countryside.