This game is notable as the first fighting game in the series with playable female characters, as well as for being the only one where Kunio and Riki's girlfriends are not Hasebe and Mami, respectively.
The Story involves a mysterious doppleganger framing Kunio for a hit and run attack, after which Kunio and Riki are imprisoned. After breaking out of jail, they reunite with their girlfriends, Misako and Kyouko, and work to apprehend the conspirators.
- Sabu - The leader of a yakuza gang known as the "Sanwakai", and returns as the main antagonist of the game.
- Ken - Kunio's lookalike. He is hired by Sabu to frame Kunio for a hit-and-run accident that landed the latter and Riki into jail at the beginning of the game.
- Misuzu - A giant sukeban from the Taiyō Academy, and she is also the Sabu's bodyguard.
- Shinji - The leader of a bōsōzoku gang known as "Yokohama Funky", and he is also known as "Blue Emperor".