William Rockman, a champion "Terminal Combat" fighter who retired from the sport after accidentally killing a young man while training. Five years after his retirement, Terminal Combat has been banned by the government and has gone underground. The "new" Terminal Combat is just that; one combatant in each match usually does not live to tell about the experience. When Rockman's younger brother is killed in one of the underground matches by his old rival, the King, Rockman enters the tournament to exact revenge on the King, not knowing that the King and his wife, Daria, have been enslaved by Max Brito, the tournament's greedy promoter.

Former Green Beret Louis Stevens returns to his hometown of Miami after completing military service in Brazil, only to learn that his old high school has become a haven for gangs and drug dealers. After Stevens uses his capoeira skills to kick several drug dealers off of the school property, Kerrigan, one of Stevens' old teachers, sees the impact that Stevens has on the students. Kerrigan gives him the task of teaching Capoeira to a handful of the worst at-risk students at the school.