Following Raoh's defeat by Kenshiro in the second installment, a fresh contender emerges in the form of the Gentle Fist Style brawlers, with Falco as their leader. However, unknown to them, Falco is taking orders from the sly Jacko, who has appointed himself as the Tentei's chosen one, ordering his followers to apprehend anyone they can to construct his Imperial Capital. In the customary fashion, Kenshiro comes out of the shadows to put an end to Jacko's dictatorial rule. Amidst the turmoil, Lynn is taken captive and transported to the dangerous Shura land, where only the heartless fighters can endure. To rescue Lynn and escape unscathed, Kenshiro must battle and vanquish the three Rasho who govern over this cunning domain.