A violent, guitar-playing, electrically charged boxer faces off against an electronic wizard half-merged with a metallic Buddha.

Benkei, a master fighter and killer, vows never to take another life after his conversion to Buddhism. His faith in pacifism, however, is shaken and ultimately broken by the attacks from a trio of fighters known only as the demons. Taking up his sword once more, he sets out to end their murderous terror.

Humanity finally rids themselves of Godzilla, imprisoning him in an icy tomb in the South Pole. All is peaceful until various monsters emerge to lay waste to Earth's cities. Overwhelmed, humanity is seemingly saved by a race of benevolent aliens known as Xiliens. But not all is what it seems with these bizarre visitors. If humanity wishes to survive, they must reluctantly resurrect their most hated enemy, Godzilla.

In 1970s-era Japan, three children, Kazuma Kiryu, Akira Nishikiyama, and his younger sister, Yuko Nishikiyama, are raised together in Shintaro Kazama's Sunflower Orphanage. In the summer of 1980, Yumi Sawamura, a young girl whose parents were accidentally shot and killed during a gang's shootout, joins them in the orphanage. Following a yakuza tradition, the honorable Kazama secretly raises orphans whose parents he has directly or indirectly killed. In return, the children love him as a father and he eventually inducts the teenage Kiryu and Nishikiyama into the Dojima Family, a Tojo Clan affiliate of which he is a senior officer.

Bison, the ruthless leader of the international terrorist organization Shadowlaw, has been desperately searching for the greatest fighter on the planet for years. He finds it in Ryu, a young wanderer who never stays in one place long enough for Bison to find him. He does, however, get a fix on Ken Masters, an American martial arts champion who studied with Ryu as a child under the same master. Meanwhile, Major Guile of the United States Army is forced to team up with Chun Li from China in hopes of apprehending Bison and putting a stop his international ring of crime.