The second Iron Fist Tournament starts exactly one year after the first one ended. This 2nd tournament sees last years victor Kazuya Mishima now ruler of his father business empire the Mishima Zaibatsu.
Word has come that the dark power of Heihachi Mishima has risen again and has come back to claim his empire and title as "King of the Iron Fists" so Kazuya announces start of the 2nd tournament knowing his father will enter.
This tournaments see the return of all the previous combatants with all new skills and techinques. We also see the enterance of many new fighters each eager to make their mark bringing the total of fighters to 23.