Four years after the events of Soulcalibur, Nightmare has been defeated by three warriors, and the evil of the Soul Edge has been expelled.
Both the Soul Edge and its true form, the Soul Calibur, were banished to an alternate void, alongside its wielder, Inferno.
The fragments of the sword still linger about, causing chaos around the world.
Several warriors who came into contact with these pieces set out to destroy or possess the evil weapon, while a newly revived Nightmare begins seeking souls to restore the Soul Edge.
