- Terry Bogard - The main character of the Fatal Fury series. After the death of Geese Howard, he adopted and trained his son, Rock Howard.
- Total number of Characters: 12 + 2 unplayable
- Characters reappearing from previous game (Fatal Fury: Wild Ambition): 1
- New Characters: 2
- B. Jenet - The leader of a group of pirates known as the Lillien Knights.
- Freeman - A deranged British serial killer.
- Gato - A skilled and ruthless Quan Fa practitioner.
- Hokutomaru - The only pupil of Andy Bogard that fights with a wooden sword and throwing weapons.
- Hotaru Futaba - A young girl skilled in Kung Fu but doesn't like violence.
- Grant - Bodygaurd and friend to Kain R. Heinlein, a master of the deadly Ankoku Karate.
- Kain R. Heinlein - Brother-in-law to Geese Howard, uncle to Rock Howard and a major crime lord of Second South Town.
- Kevin Rian - A S.W.A.T. officer with a strong sense of justice.
- Khushnood Butt - The apprentice of Ryo Sakazaki.
- Kim Dong Hwan - The oldest son of Kim Kaphwan, unlike his father he is cocky and only marginally disciplined with his own unique take on Tae Kwon Do.
- Kim Jae Hoon - The youngest son of Kim Kaphwan, like his father he is a highly disciplined Korean practitioner of Tae Kwon Do with a strong sense of justice.
- Rock Howard - Biological son to Geese Howard and adopted by Terry Bogard, has many fighting skills from both.
- Tizoc - A super-buff pro-wrestler with an eagle head mask.