Jeff Bogard was a master of the Hakkyokuseiken martial arts school and the guardian of its secret techniques. Coveting this knowledge, Geese Howard, the most powerful man in South Town, challenged and murdered him in front of his adoptive sons Terry and Andy Bogard. Under the guidance of their mentor Tung Fe Rue, the brothers dedicate their lives to training in the ultimate art to avenge their father.

10 years later, Geese promotes a martial arts tournament known as the King of Fighters. Terry and Andy join their friend Muay Thai champion Joe Higashi and enter the competition in order to finally face Geese in combat.