As a child, Jun Kazama watches as Kazuya Mishima is thrown off a cliff by his ruthless father, Heihachi, who deems him as weak and kind-hearted. She attempts to locate him, but fails and Kazuya is presumed dead. Kazuya, however, only barely survives and swears revenge, selling his soul to the Devil in exchange for his own survival. Sixteen years later, Jun works as an Interpol agent and is assigned with a partner, Lei Wulong, to investigate the Mishima Zaibatsu for alleged inhumane experiments on animals by infiltrating the upcoming King of Iron Fist Tournament. Kazuya also plans to enter, hoping for a chance at revenge. Heihachi’s adopted son, Lee Chaolan, attempts numerous times to have Kazuya killed in advance by Nina and Anna Williams, as Heihachi plans to bequeath the Mishima Zaibatsu to Kazuya should Kazuya defeat him at the tournament. Neither are able to succeed. Jun and Lei board a boat heading for Mishima Island, where the tournament will take place, and Jun recognises Kazuya when he slips aboard. She confronts him in the gym about his past and attempts to persuade him to stand down, but Kazuya refuses, especially after Nina and Anna attack again and only barely fail to kill Kazuya.
On the day of the tournament, Lei infiltrates the island’s underground facility along with another competitor, Jack, who seeks out Dr. Bosconovitch in order to cure his terminally-ill young companion, Jane. As they fight their way through numerous androids, Jack’s arm is gashed and Lei discovers he is also an android. They finally locate Bosconovitch, who treats Jane and confesses the Mishima Zaibatsu’s illegal activities to Lei. Meanwhile, Jun attempts to reach out to Kazuya, and arrives in time to stop him from murdering Michelle Chang, a fellow competitor also seeking revenge against Heihachi for burning her village and causing her parents’ deaths. Lee unleashes a pack of genetically-enhanced dinosaurs into the field to kill Kazuya. One devours Anna while Nina escapes. Kazuya taps into his inner power and kills all but one of them before reaching the tower where Heihachi awaits him. After fighting his way past Lee, Kazuya confronts Heihachi and the two fight. In response, Lee activates the island’s self-destruction sequence, intending to kill himself and take his family with him. After taking a vicious beating, Kazuya succumbs to his power and viciously pummels Heihachi. Though it seems as if he will kill his father, Jun manages to reach into Kazuya’s heart and enable him to expel the Devil, reverting him to his original self; Heihachi sucker-punches Jun and Kazuya and the three of them fall from the cliff. As the island begins to crumble, Lei, Jack, Jane, and Bosconovitch flee the facility; Jack sacrifices himself to hold the door open long enough for his friends to escape. The remaining competitors escape from the burning forest as Kazuya emerges with the unconscious Jun. They escape the island while Heihachi flees in a jet as the island explodes. Sometime later, Jun is accosted by Jin, her young son with Kazuya; Kazuya’s whereabouts are left unrevealed. Though Jun senses something is wrong, she dismisses Jin’s concern and they walk home together.