Its another day at school in Nekketsu High and series star Kunio finds a note in his locker challenging him to a secret martial arts tournament. Sure enough Kunio and his friend Riki accept the challenge and head out with the hopes of becoming the grand champions of the city.

Kakuto Densetsu is another 2d side scrolling beat'em up in Nekketsu High series, featuring the same gameplay which involves beating up your enemies in side scrolling levels with a combination of punches, kicks and special moves. The differences in this title however, are that the entire game is laid out as 2-on-2 tournament fights in non-scrolling arenas in which your team must come up on the winning end and advance to the next round. You can play with good old Kunio or create your own character and advance his stats as he goes along in standard Nekketsu High fashion, and you can play alone with an AI-controlled partner or with a friend (you can also go for a 4-player battle royale in the Vs mode).

Backgrounds have a major role in the fights, with several hazard zones and unique features, and the game also encourages teamwork as many special moves can be unlocked only by combining both of your characters (depending on their compatibility)