After Haggar, Cody, and Guy saved Haggar's daughter Jessica and defeated the Mad Gear Gang, peace returned to Metro City. Cody and Jessica were off taking a vacation, Guy went on a training journey, and Haggar continued to run the city as mayor. However, the Mad Gear soon return with a new leader and kidnap Guy's fiancée, Rena, as well as her father and Guy's former teacher, Genryusai. Haggar receives a telephone call from Rena's younger sister, Maki, and is informed of the Mad Gear's return. Haggar's friend, Carlos Miyamoto, is also briefed on the situation, and the three must travel around the world to bring an end to the Mad Gear once and for all.