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Many years ago in Southtown, Tung Fu Rue instructed two exceptional martial artists in his style but ultimately, he chose only one; Jeff Bogard to be his inheritor and learn the great technique, the "Hurricane Punch". The other, Geese Howard was enraged and had an ambush set up, using a little girl selling flowers to lower Jeff's guard.
Badly injured, Jeff was no match for Geese who contemptuously killed him before his adopted sons' horrified eyes. Tung solemnly vows to teach one of the pair his secret technique in a decade and ordered them to learn and master the fighting arts and they would reunite and he would decide which one of the two, Terry or Andy was more worthy.
A decade has passed and Geese is now the undisputed crime lord of Southtown and runs a mixed martial arts tournament called "The King of Fighters". Terry and Andy have become extremely powerful and talented martial artists and Tung decides that they should enter the "King of Fighters" so that he can watch them and determine who is most suited for the "Hurricane Punch" technique.
Meanwhile, Terry meets the beautiful Queen of Southtown, Lily McGuire and falls for her. He subsequently recognizes her as the flower girl from a decade ago, but forgives her for unknowingly participating in Geese's ambush. Lily is still in the grip of Geese and upon learning of Terry's infatuation, orders her to drug him so that he will be unable to defend himself during a match and lose. Lily balks at the last minute and vows to help him.
Geese however has set up a backup plan and has a sniper waiting to kill Terry and Andy. A fellow competitor and friend of the Bogards, Joe Higashi however sees the sniper and knocks them out of the way; taking the bullet himself. Andy and Terry take the wounded Joe and are forced to fight their way out of the ring when Lily intercepts them and reveals an escape route that she has set up. But Lily is killed by an enraged Geese and Tung is badly wounded when helping the trio to escape.
After taking the wounded to the hospital, Andy and Terry learn that Tung is in a coma. The hot headed Andy leaves to take Geese head on and is joined by Joe who has simply received a flesh wound. A broken hearted Terry is left to watch over Tung who awakens from his coma and proceeds to instruct Terry about the secret behind the "Hurricane Punch".
Tung reveals that the reason why he chose Jeff and later Terry is that both are capable of harmonizing with nature and working with it unlike Geese or Andy who ultimately driven by their emotions and unable to calm themselves as they would seek to control the natural forces rather than work with it. Tung demonstrates it by unleashing a low powered "Hurricane Punch", Terry is overcome with awe at the sheer destructive and runs up to the standing Tung only to discover that Tung has passed away and realizes that Tung sacrificed his life with the sheer effort to pass on the secret to Terry.
Meanwhile, Andy and Joe have been busy fighting their way through an army of thugs and mercenaries but ultimately are defeated by Geese when Terry arrives and after a fierce battle, unleashes the "Hurricane Punch" which apparently kills Geese, ending his reign over Southtown.
- Mark Hildreth as Terry Bogard
- Peter Wilds as Andy Bogard
- Jason Gray-Stanford as Joe Higashi
- Willow Johnson as Lily McGuire
- Ward Perry as Geese Howard
- David Kaye as Jeff Bogard
- Mina E. Mina as Tung Fu Rue
- Paul Dobson as Billy Kane
- Robert O. Smith as Raiden
- Kazukiyo Nishikiori as Terry Bogard (Japanese Voice)
- Keiichi Nanba as Andy Bogard (Japanese Voice)
- Masaaki Satake as Joe Higashi (Japanese Voice)
- Kikuko Inoue as Lily McGuire (Japanese Voice)
- Hidekatsu Shibata as Geese Howard (Japanese Voice)
- Unsho Ishizuka as Jeff Bogard (Japanese Voice)
- Koji Yada as Tung Fu Rue (Japanese Voice)
- Daiki Nakamura as Billy Kane (Japanese Voice)
- Hisao Egawa as Raiden (Japanese Voice)