The film opens with Mai Shiranui (Maggie Q) in the shower. She gets out and has a flashback where she fights Mr. Big in a freezer and wins.
She goes to an event hosted by Chizuru, where she meets up with her close friend Iori Yagami. After some boring talking about the three legendary relics, the Yata Mirror, Kusanagi sword, and the Yasakani necklace, a very young-lookning Rugal (played by Ray Park doing his best Batman impression and randomly falling into a British accent) shows up to threaten Chizuru, cut her with the legendary Kusanagi sword, and fire a submachinegun into the audience. He runs off with the sword to an office where he finds another relic, the Yata mirror. Rugal cuts himself with the sword, grabs the mirror, and teleports away with it. He did not bring the sword as we find out it is a fake.
To learn more about the relics, Mai finds Saisyu Kusanagi in an asylum, but he’s silent. On the way out she meets his son Kyo. She then meets up with Iori again and all three go visit Saisyu. At the mention of the name Yagami, Saisyu wakes up and attacks Iori.
Cut to Chizuru in a hospital bed. Rugal has somehow taken control of the KoF tournament from inside another dimension (uh?) and is challenging everyone!
Quickly cut to some pretty women doing yoga. It’s Vice and Mature, and we get a short sensual scene between them in the locker room. As they wear their bluetooth earpieces they teleport to an arena with Rugal, dressed like Fred Durst. He beats them easily and «bonds» with Mature. Vice calls up several fighters and tells them to accept Rugal’s challenge. Then she gets raped or something, I dunno.
So Saisyu died off-camera and Mai, who we find out from some CIA douche is an undercover agent sent to infiltrate the tournament, goes with Kyo to learn more about the Kusanagis. They go to his home and somehow she almost breaks his arm so she can heal him and set up a Iori/Kyo/Mai love triangle. No mention of Andy Bogard. Kyo tells a story he heard about the Orichi power. Also he says Rugal made his dad insane.
CIA douche shows up and tells our three heroes Rugal is killing tournament fighters. During this scene she calls the CIA douche «Terry». Oh what the hell, Terry Bogard works for the CIA? She also talks about the other dimension, which she explains is where the fights usually take place. So Iori steals her earpiece and teleports away, showing up in a room with mannequins and Rugal wearing … uh, some really gaudy clothes including plaid pants, a pink scarf, and a bowler hat. He sics Vice and Mature on Iori, who almost gets defeated until he unleashes his Orochi power, which starts floating around the room as a big ball of snakes. Then he beats up the girls but teleports back before he kills them, leaving the Orochi power behind.
Later, Iori nags Kyo about not knowing about his family history and his destiny to fight Orochi, and gives him the teleport thingy. Kyo winds up before Rugal and they have a short fight that Kyo loses in two seconds. Rugal just laughs at his uselessness and sends him back. This makes Kyo even more whiny, and we get another scene with Mai whining that they need his help and his sword to defeat Rugal. Turns out Kyo had the sword they were looking for all this time, he just didn’t feel like bringing it out.
So Terry Bogard has now gone around and confiscated all the teleport devices from the different fighters so Rugal won’t kill them (and making sure we don’t need to see any more KoF characters in this movie). This doesn’t mean Rugal can’t teleport out, grab someone, and then teleport away, which he does with Mai right after the plot point has been brought up. It’s probably worth mentioning that whenever someone goes to the other dimension, they are dressed as they do in the game. Except for Mai, who wears a blue lingerie thing. Kyo and Chizuru teleports in as well, and so does Terry, finally wearing his red outfit and looking like he should! Kyo pulls out the sword but is sent to a sub-dimension and has to fight Rugal (dressed like Geese Howard) alone. Well at least until Iori shows up and there’s lots of silly fire special effects.
Meanwhile, Mai and Terry are in their own little sub-dimension and fight Vice and Mature and a lot of bums in back alleys while looking for a door to teleport to the rest of the gang. As they show up Rugal tells about the time when he fought the clans for the Orochi throne. The Orochi (the previously mentioned floating ball of snakes) was summoned and Iori took it into him, flying into a rage and destroying Saisyu’s mind. When the flashback is over Iori is still in the rage from inside the flashback and attacks Kyo. When he goes for Mai, Kyo sees no other way than to slice Iori with the Kusanagi blade, which cures him. Rugal gets pissed and sends everyone to a back alley, then tries to set fire to our heroes with his fire powers that we all remember from the game. Mai defends our heroes by making an electric barrier, as we remember from the game. Chizuru also shows up and annoys Rugal by teleporting around. There’s a big brawl with everyone plus the bums. Somehow Chizuru dies and transfers the mirror’s powers to Mai. With the combined powers of the mirror, sword, and necklace that was mentioned once earlier but Iori has been carrying around, they almost defeat Rugal. But almost isn’t good enough, and Rugal knocks everyone down and destroys the sword. But Kyo gets a flashback and gains the Power of Love (Guts +2/Hearts +3/Smarts +1/Will +1), which lets him regenerate the Kusanagi sword and throw it at Rugal, which breaks his spell over Vice and Mature, all the bums fall over, and Terry can pick up his Fatal Fury cap again.
Then we get the cliché ending at the docks with everyone looking out over the water, Saisyu’s ghost shows up to talk to Kyo that he should trust his new friends (uhh even that Yagami guy you attacked on sight?), roll credits.
Number of times Kyo does a fire-related attack: 0
This is a bad movie with bad acting and a terrible script. Don’t watch it.