The King of Iron Fist Tournament 2 Draws to a close. Jun Kazama comes to the stunning realization that Kazuya's supernatural strength stems from Devil. But she cannot help being drawn to him, propelled by a mystic force beyond her control. Several days later, the final challenger arrives to face Kazuya, the organizer of the King of Iron Fist Tournament 2. In a reprise of the first Tekken Tournament, the father and son clash in a cursed blood battle. Eventually, Heihachi emerges scarred but victorious to regain control of the immense Mishima Conglomerate. Unaware of Devil's presence, Heihachi casts the lifeless Kazuya into a fiery volcano.

As Kazuya's body burns, the Devil appears before the pregnant Jun Kazama in a bid to enter the soul of the new life beating within her. But in a desperate struggle for the future of her child, Jun defeats Devil and retires to desolate Yakushima so as to raise Kazuya's son, Jin, alone.

Having regained control of the Mishima Conglomerate, Heihachi sets about to further increase his powers. He embarks on a crusade to win the trust of world leaders by putting wars and conflicts to rest. Using his immeasurable wealth, he forms Tekkenshu, a mercenary group employed to quell conflicts efficiently. He also takes a strong interest in the well being of developing nations by helping them build agricultural systems that will sustain them. Through Heihachi's efforts, the world appears to be regaining peace.

Around fifteen years have passed and Jin Kazama is now 15 years old.

Under Heihachi's orders, the Tekkenshu are excavating a Central American archeological site when they discover a mysterious life form. Heihachi orders the creature's capture, but loses contact with the Tekkenshu after a garbled radio message, "... they are all dead... Toshin (Fighting God)?!..."

Upon arriving at the dig, Heihachi finds a field of corpses. Heihachi is wracked by sorrow, but also realizes that the power of the mysterious life form could be the key to his long dormant dream of world domination. To obtain this mysterious power of Toshin, and the world, Heihachi tempts the fates once again...

Within weeks, strange disappearances occur throughout the world. Persons of strong soul, masters of martial arts and other derivative fighting disciplines are reported missing... with no knowledge of their whereabouts.

Jun Kazama instinctively picks up on the dark power encroaching on her life. She has no understanding of what it is, but senses that she has become a target. Accepting her destiny, she tells Jin everything she knows of their haunted past to prepare him for the fateful day she now feels is imminent. She tells Jin to go to his grandfather Heihachi if anything befall her.

Her intuition proves right on a cold, stormy night. Toshin comes to the mountains bringing a chilling, swirling wind. "Run away!" cries Jun. But against his mother's pleas Jin opts to face Toshin and is knocked unconscious.

When Jin awakens, the house and everything around it is burned to the ground. Jin searches frantically for his mother but she is nowhere to be found.

Jun has died at Toshin's hands. Honoring her instructions, Jin goes to Heihachi and begs to be trained in order exact revenge. Heihachi, hearing Jin's tale, is convinced that Toshin is after the souls of powerful fighters. To attract Toshin, Heihachi decides to host the King of Iron Fist Tournament 3.

Four years later, on Jin Kazama's 19th birthday, the curtains rise for the King of Iron Fist Tournament 3.