The game re-tells the story of the original Fatal Fury video game. It introduces Toji Sakata and Tsugumi Sendo to the series, and places Mai Shiranui, Kim Kaphwan, and Li Xiangfei as participants of the original King of Fighters tournament. Ryuji Yamazaki also appears as a mid-boss character and Ryo Sakazaki makes an appearance as Mr. Karate, tying the events of Art of Fighting 2 to this game.