A worldwide martial arts tournament is nearing its finale, with a large purse of prize money awarded to the fighter who can defeat Heihachi Mishima in the final round of the competition. The giant financial group, the Mishima Zaibatsu, sponsors the contest. Eight fighters remain after winning death matches all over the world, with the winner of the tournament receiving the King of the Iron Fist title. Only one will have the chance to defeat Heihachi and take home the prize money and fame. The player can initially select one of those eight fighters, each with their own reasons for entering the tournament aside from the prize money.