Baki explains to his mother why he fights, visits Hanayama in the hospital, and trains. After a brief encounter with Yujiro, who killed the Yasha Ape, which made Baki angry since Yasha was Baki's friend after their fight, they decide that Baki and Yujiro will fight in one month. Baki then meets Captain Gerry Strydum, who tells him of a mercenary group in Hokkaido, and Baki decides to go there to defeat them.

Antonio Igari, a pro wrestler, tells Mitsunari Tokugawa, an old man who runs an underground fighting circuit, about Baki Hanma and his recent global travels. In the narrative, Baki is seen training and fighting, and, while in Brazil, he visits a fighting master named Dickson. Learning of the circuit, Baki returns to Japan to meet with Tokugawa, and he fights Tokugawa's bodyguards to earn a chance to enter the circuit.

Dr. Shinogi Kureha reveals to his brother, Kousho Shinogi, the Cord-Cutter, why he is fighting Baki Hanma; Doppo Orochi and Yujiro Hanma fight.

Yujiro arrives and enters his protégé Amanai Yu in the tournament; in the first C-Block match of round one, heavyweight boxing world champion Ian McGregor fights Taekwondo master Li Moko; in the second C-Block match of round one, biker gang leader Shiba Chiharu fights judo master Hatanaka Kohei; in the third C-Block match of round one, Shorinji Kenpo master Misaki Kengo fights pro wrestler Mike Queen.

In the first C-Block match of round two, Shiba Chiharu faces Ian McGregor.

Andreanof Garland and Jack Hammer continue to fight in the third match of the quarter-finals. Also, Hammer's training history is revealed.