Forty years ago, the minds of Paradigm City's inhabitants were wiped clean of all recollections of the past. Now, ruled by a powerful corporation and cut off from the rest of the world by desolate wastelands, Paradigm has become a virtual police state where Negotiators like Roger Smith keep the wheels of progress, commerce, and society turning.

Ryu and Ken travel the world to become better fighters and learn new techniques. During their journey, they find themselves caught up in a conspiracy of the mysterious Shadowlaw.