Doppo Orochi takes a seat to observe the final bout of his karate school's youth tournament. Atsushi Suedou, one of his disciples, competes against Baki Hanma, a young teenager who is effortlessly advancing through the competition. Fascinated by the boy's power, Doppo, accompanied by another disciple, Kiyosumi Katou, visits the infamous Tokugawa underground ring—a concealed freestyle fighting arena where only weapons are banned. Upon their arrival, they discover that Baki is scheduled to fight none other than Koushou Shinogi: a notorious karate master and practitioner of the deadly Cord-Cutting technique.