A scrap-happy Ryu's square's off with the air-force sergeant Guile, who isn't too pleased with the previous rough-handing of his subordinates. The two clash, and Ryu soon finds himself hopelessly outclassed. While Guile initially looks to end things with a quick physical rebuke, Ryu's perseverance gets him a more severe beating. Ken is incensed by this, but won't intervene because he believes the fight should remain one-on-one.
After taking Ryu home, Ken waits until the next day then tracks Guile down at the army base and challenges him, only to earn himself a similar beating. After regaining consciousness at his mansion, Ken discusses Guile's strength with Ryu, and consider that there must be fighters like him all over the world, those who have incredible prowess but don't enter public tournaments. Intrigued by the challenge these unknown fighters present, Ken & Ryu set off on a quest to find and challenge them and further develop their own martial arts skills.