A year after the events of Double Dragon II: The Revenge , Billy Lee is running a dojo training students in martial arts. However, when he's away, his dojo is attacked and his girlfriend Marion is kidnapped. A soothsayer named Hiruko has information on Marion's disappearance and claims the kidnappers will release her in exchange for the three sacred stones of power. The locations of these stones are known only to Hiruko, who reveals they can be found all over the earth.
Billy Lee (and his brother Jimmy in two-player mode) must travel the globe in five missions, visiting the U.S.A., China, Japan, Italy, and Egypt, fighting bad guys along the way. He'll pick up allies Chin and Ranzou, each with their own life bar and primary weapon, as well as a limited supply of secondary weapons. Players can switch between these four characters, who have different abilities and combat styles.
Players can use punches, kicks, and other special moves to dispatch foes, including Billy and Jimmy's nunchaku and Chin's iron claws. Ranzou uses shurikens as his primary weapon. Characters can also pick up items like army knives and broken bottles to fight with.