Seven years after the apparent death of Chen Zhen, who was shot after discovering who was responsible for his teacher’s death (Huo Yuanjia) in Japanese-occupied Shanghai. A mysterious stranger arrives from overseas and befriends a local mafia boss. That man is a disguised Chen Zhen, who intends to infiltrate the mob when they form an alliance with the Japanese. Disguising himself as a caped fighter by night, Chen intends to take out everyone involved as well as get his hands on an assassination list prepared by the Japanese.

When the Amago samurai withdraw their protection of the village of Tatara, famous for their manufacture of the legendary swords, the younger generation – erroneously – believe that guns will suffice.

In order to conceal past corruption by the government, the Kyuryu group proceeds on a plan to destroy a street and build a casino. To stop the Kyuryu group, members of SWORD begin to move.

Members of SWORD win against Wangan Rengogun, which is led by Kohaku (Akira). The city becomes peaceful again. Nevertheless, the most brutal gangs, Doubt and Prison Gang, appear. They try to dominate the area controlled by SWORD.

S.W.O.R.D. Chiku is a devastated and dangerous town with 5 gangs – Sannoh Rengokai, White Rascals, Oya Kohkoh, Rude Boys and Daruma Ikka – fighting fiercely. The name S.W.O.R.D. comprises of the first letter in each of these gangs. Before these 5 gangs, the legendary Mugen gang dominated the town. Mugen and the Amamiya Brothers (who did not submit to Mugen) clashed and Mugen disbanded, but …