The story starts after the events KOF: Maximum Impact. After the demise of Duke and his gang, Alba and Soiree Meira now spend their days protecting the citizens of Southtown. During the night, a fire breaks out in the city. With Alba away at the time, Soiree leads the rescue effort and rallies the rest of their gang to help. After she saves a young girl from a burning building, Soiree fights Iori Yagami, who was searching for the cause of the fire. They continue their fight in a church until Soiree moves to shield the girl he saved earlier from the building's collapsing ceiling; they were rescued by the joint efforts of Athena Asamiya and Mai Shiranui. The scene shifts to dawn with Soiree digging through the rubble (trying to find Iori) until Alba informs him that Iori survived. Alba also shows that he had rescued the two last survivors of the fire - a couple of kittens. Relieved that everyone is safe, Soiree collapses, extenuated.
The second chapter begins with Rock Howard experiencing a nightmare of him fighting Terry Bogard in a situation that mirrors Geese Howard's death. He leaves the apartment he shares with Terry and sees the town in flames. A blue light beam fired over Geese Tower calls his attention and he goes to investigate. On the tower's rooftop, Billy Kane and Lien Neville, who was sent to kill people related to Geese, are fighting. Billy hangs her beyond the roof with his pole when Rock arrives at the scene. Disagreeing with Billy's insistence to drop Lien, Rock fights with him and rescues Lien from losing her grip from the roof's edge. Billy then claims that Rock shames the legacy of his father and decides to kill him and Lien. However, Lien calls for reinforcements and the roof is fired with the same beam from moments ago. Rock asks her if killing him would free him from the shadow of Geese. She answers that it is up to him. Inside the building, they see the remains of a wall where a portrait of Rock's mother was presumably displayed. When Rock returns home, Terry leaves him for a nap and tells Rock to wake him when breakfast is ready. Rock notices the picture of his mother underneath Terry's jacket, muttering thanks to Terry for his kindness.
At the beginning of the third chapter, we see K' and Maxima sabotaging the underground tunnel system in Southtown (while the fire is raging), trying to find out the whereabouts of the "Kyo clone" and a kidnapped scientist called Makishima. Their covert activity becomes noticed by Heidern and he sends Leona, Ralf and Clark to investigate. K' and Maxima attempt to elude their pursuers by boarding a subway train but Heidern's team catches up to them. Ralf accuses the duo of kidnapping the scientist and they start fighting. After 24 seconds of calculated fighting, Maxima grabs K' and escapes into another train going the opposite direction. There, they are reunited with the rest of their party, Whip and Kula.
Here is where the previous chapters' stories intertwine with Kyo Kusanagi rising from the city's rubble and rescuing a victim. He sees a green flame and knowing the source to be Ash Crimson, he gives pursuit. Watching atop a building, Ash drops a crane from above, forcing Kyo to defend himself with his flames. Alba arrives on the scene and, after witnessing this event, concludes that Kyo started the fire and fights with the supposed criminal. Amused, Ash watches them until Iori attacks him. Bored by the intrusion, he escapes with the fire in the city also vanishing along with him. Heidern's team of Ikari warriors watch Alba and Kyo's fight, which continues despite the fire's disappearance. Confusing Kyo for a clone, Ralf plots to attack him until Iori arrives and says that it is the real Kyo, stopping the fight afterwards. After he learns that Ash was the real arsonist, Alba apologizes to Kyo and the three fighters part ways. As the sun rises, Alba is shown finding the two kittens that he rescues in the first episode. The final scene shows Ralf asking if Kyo isn't really a clone while lighting a cigarette. Kyo, lighting his flame, asks Ralf if he would like to find out.