An update to this game's prequel that also uses the CPS3 system. Adds three new selectable characters including a hidden character, increases the play speed, and introduces a few new moves along with damage modifications.

This is the follow-up to Street Fighter III: New Generation . The brothers Yun and Yang are now truly separate characters with different moves, the demonic Akuma known from previous Street Fighter installments returns (though not as regular part of the roster), and two other new characters are introduced:
- Hugo. A big professional wrestler. His roots lie actually in the Final Fight series.
- Urien. The brother of the boss character, Gill. Urien's appearance and moves resemble him. While Gill manipulates powers of ice and fire, Urien wields lightning and has the ability to make his body metallic.

There are also some notable additions in terms of gameplay. A player can now perform EX Specials, which are powered up versions of the moves at the cost of a reduced Super Art gauge. It's possible to escape from a throwing attack, and a "Personal Action" grants characters specific benefits (Alex receives more attack power for example). Furthermore, there is now a bonus round which tests the parrying skill of the player, as Sean throws basketballs towards him which can be deflected