The King of Fighters: Kyo

During the climax of The King of Fighters '95, Kyo's Esaka Team composed of Kyo and his teammates electric fighter Benimaru Nikaido and Judo user Goro Daimon wins the tournament by defeating Iori Yagami's team by time. The Japanese team is then attacked by Kyo's missing father Saisyu revived and brainwashed by the host after the events of The King of Fighters '94. After helping his father regain his senses, Kyo faces the host Rugal Bernstein who seeks revenge for his previous death. After a long match, an overwhelmed Rugal dies as he is unable to control his the new power he obtained which Iori calls Orochi behind the arena. Kyo then returns to his home town and lazes around his school life while dating fellow student Yuki.

After the previous tournament, Athena Asamiya from the Psycho Soldier Team appears in the school in order to understand Kyo's lineage which causes her teammate Sie Kensou to rush in jealousy. The argument stops when Iori also appears and threatens Kyo with hurting Yuki if he does not accept their rematch. As the two fighters are equally matched, Athena fears things might escalate and deflects one of Iori's attacks. This causes a confuse Iori to leave with Athena sensing a sadness in Iori's mind. In the aftermath, Kyo is altered by Iori's attack and starts losing his aura as called out by his father and later loses his flames when chased by Iori's former teammate Billy Kane. Believing he can help his son, Saisyu stages a fight to recover Kyo's power and kidnap Yuki. As this happens Athena and Sie confront Iori again to learn about his lineage but he ignores them and attacks them. After this, Iori ambushes Kyo and tries to kill him again. Before being finished, Kyo's flames become blue like Iori's and takes the upperhand. The battle is interrupted by Saisyu who distracts his son to recover Yuki as well as his original powers.

While resting from the previous fights, Iori meets Rugal's servants Vice and Mature who are interested in serving him. Meanwhile, Saisyu tells Kyo and his friends the origins behind their lineage. In the past, the two martial artists Kusanagi and Yasakani managed create a fighting style involving the use of fire. However, Yasakani sold his soul to the demon Orochi, and was sentenced by Kusanagi. This led to the feud between Kusanagi clan and the now renamed Yagami. However, Athena still sense humanity within Iori's mind and arranges a karaoke between Kyo and Iori to solve their differences. Despite being tricked into this, Kyo and Iori decide to agree into this and start practising.

As the match comes close, one of the Four Heavenly Kings of Orochi Goenitz appears in the town and attacks Iori's team. Goenitz takes down Vice and Mature and knocks out Iori. A fighter named known as Chizuru Kagura, who tracked the Kusanagi family down under the guise of a sports reporter, confronts Kyo. She brings him to his family's marker, which revitalizes his ancestor's memories. Together, they face Goenitz to save Iori, who is kept as his personal trophy on a cricked cross. Kyo learns that Iori is being tormented by Orochi's curse and knock him down. He then confronts Goenitz again and manages to defeat him with his strongest move, the Mushiki. He still spares Goenitz and decides to have a rematch in the next tournament. Kyo and Iori decide to solve their differences in the next tournament acknowledging he needs to become stronger. A side story focuses on the Ikari Team as their youngest member, Leona Heidern, was cursed by Goenitz and is trying to control her Orochi curse.