At the conclusion of the SvC Chaos Tournament, an injured Serious Mr. Karate - better known as Takuma Sakazaki is found by his friend Lee Pai Long.

However this time, upon returning to Southtown, he finds the Kyokugenryu Dojo trashed, in a way that made Baek's attack on Law's dojo look trivial, with his three top pupils missing.

A injured King, who was visiting at the time, tells Takuma of what had happened.

"He looked a lot like Nanakase...with a body like iron...tore through everything and everyone...Ryo, Yuri and Robert...they didn't stand a chance. He's kidnapped them."

Furious, Takuma dons a spare Tengu Mask and is off searching for whoever kidnapped his family. he is now back in Serious Mr. Karate Mode.

The kidnapper in question is Urien and he had kidnapped the three as part of his plot to create the perfect soldiers for the Illuminati, taking a page from Bison's playbook.

Upon finding Urien, Takuma demands that his children and Robert ae released. Urien's response to this is that he prepares himself for battle. Karate sees that his Ko'ouken is not as effective, due to Urien's defense. when he tries the Haohshikouken, Urien counters with the Aegis Reflector, forcing Takuma to avoid being hit by his own move.

Takuma sees that he is in for the fight of his life, with the freedom of Ryo, Yuri and Robert in the balance.