Kiryu arrives back in Kamurocho, still brooding from the news he received in Fukuoka. He quickly realizes he's being tailed, and lures his pursuer to a deserted alleyway. The pursuer is revealed to be Shigeki Baba, who is still in line with Morinaga despite his misgivings.

The two go to New Serena, where Baba introduces himself and explains how he'd been working for Morinaga in order to lure Saejima back into Kamurocho. He assumes that Morinaga is the ringleader, but can't be sure who's really behind the scenes. Baba tries to dissuade Kiryu from staying in Tokyo, since Morinaga's plans were to lure Kiryu back to the city. Regardless, Kiryu cannot be dissuaded from uncovering the truth. Kiryu tells Baba to give Haruka a message, but Baba has to report in to his superiors first. Baba cannot promise that the next time they meet, that they won't have to kill each other. Kiryu understands.

Saejima meets up with Detective Serizawa in Kamurocho. Serizawa reveals that his forces have apparently located Goro Majima, who is being held by the Omi in a nearby theater. Saejima rushes into the fray and tears through the forces guarding the area. He quickly realizes however that the people holding the reins aren't Omi, but rather Tojo Clan.

On the front stage, Saejima comes upon Yu Morinaga, Shigeki Baba, and a tied-up Goro Majima. Morinaga is pleased that Saejima made it, saying that he acted exactly as predicted. Saejima tries to get through to Baba, who isn't willing to hear it with Morinaga around. Morinaga asks Baba if he's ready. Baba steels himself and agrees, committing himself to his former aniki in full. Saejima fights both of them in a brutal brawl, and beats Baba. Morinaga is beat back but not out of the picture.

Saejima frees Majima, who is grateful as he flees. They promise to meet back up and end the conflict soon enough. Morinaga gets back up for more, and as Saejima's about to pin him down, his hand is stopped by a thick, meaty hand. Masato Aizawa forces Saejima into submission, revealing himself to be both alive and in on the conspiracy, although he doesn't look pleased. He apologizes to Saejima and knocks him unconscious as Morinaga and Baba watch. Majima escapes.

Saejima is woozy as he hears Aizawa and Morinaga converse. He overhears something about a trap for Majima, but can't do anything about it as he is currently tied up.

Akiyama returns to Sky Finance with Haruka and finds a very beat-up Majima on the couch. The three sit down and converse about what's happened, and particularly about Park's death. Majima admits that he regretted leaving her and wanted to see her again to see Haruka's dream achieved. Even so, he's now certain that their enemies are plotting to attack Haruka's performance solely to hurt Kiryu. Haruka is distraught as she realizes that her father is likely in Kamurocho fighting for her, but agrees. Despite Majima's misgivings, they decide to go forward with the performance. Hana returns to help. Majima in the meantime decides to track down Katsuya and try to get him to work against the conspiracy, as well as give up Saejima's location. Majima believes that Katsuya merely is doing what he's told in the war against the Tojo.

Kiryu speaks to the Florist, who tells him that his friends Akiyama, Saejima, and Majima have been scurrying around preparing for the big fight, while bigshot Omi leaders like Katsuya and Watase have also started arriving. The Florist gives out Katsuya's location at his Kamurocho Hills Hotel suite room. Kiryu decides to go there to try to figure out what's going to happen next.

Kiryu and Majima storm Kamurocho Hills at the same time, and run into each other as they're beating up enemies. Their reunion is short but Majima is ecstatic to see Kiryu, and Kiryu looks relieved before smirking as the fight continues. They team up the rest of the way up to the top, where Katsuya and Watase are waiting for them on the roof. Watase is ecstatic to see both the fabled Dragon of Dojima and Mad Dog of Shimano ready to fight them. Kiryu tries to convince them that they're being played by someone. Katsuya seems more open to the idea of it. Watase just wants to fight.

Two fights break out: Kiryu vs. Watase, the fight Watase dreamed of. And Majima vs. Katsuya, the battle of the former friends, for whom Park died. Kiryu and Majima emerge victorious over them, which Watase is satisfied with. Katsuya admits that they were set up, but doesn't know how to outplay the man responsible. Kiryu asks who this is.

Shots ring out over the building as Kiryu, Majima, Watase, and Katsuya all are shocked. Standing across from them is Detective Serizawa, now revealed to be Tsubasa Kurosawa, the dying chairman of the Omi Alliance. He is accompanied by Morinaga and Aizawa. Morinaga is joining him on the shooting, while Aizawa looks noticeably displeased.

Watase is confused by what's going on, and betrayed as Morinaga manages to wound him. Kurosawa reveals that his true intentions are to purge both the Omi and the Tojo of "charismatic Yakuza" who would lead both groups in the war. He holds a great distaste for them, and wants them to die as unceremoniously as possible as a statement. Morinaga takes a moment to reassure Aizawa, who looks out of his depth.

Kurosawa ignores this and fires off a shot aimed at Majima. Katsuya intercepts it, taking the bullet for Majima and ultimately dying for him. As he dies, he apologizes for Mirei's death. Majima is in shock. Kurosawa and Morinaga are out of bullets. Morinaga expresses that he just wants Kiryu to die. Kurosawa shows him a strange amount of affection while disregarding Aizawa.

Kiryu, Majima, and Watase watch helplessly as Kurosawa leaves with Morinaga and Aizawa. They are joined by Kanai, who reveals that he too is in on the conspiracy as the main muscle for the Omi side of things. Before he departs, Kurosawa threatens Haruka's safety.

At Haruka's rehearsal space for the debut concert, she and her team are approached by the T-Set girls and their manager, who tell them about Katsuya's intent for the formation of a supergroup between them: Dreamline. Haruka is thrilled by the prospect and agrees to form this new group and debut it at her concert.

Their rehearsal is interrupted a short while later by the arrival of Baba, who claims he has a message for Haruka from Kiryu. Baba is clearly more distraught than ever but trying to cover it up. Baba and Haruka have a conversation in private, where Baba relays Kiryu's message to her: "Don't give up. I'm rooting for you". Haruka departs and Baba receives a call from Kurosawa.

At New Serena, Kiryu, Majima, Akiyama, and Kiryu's friend in the police, Makoto Date, gather to pool their knowledge about Kurosawa and his plot. They conclude that Kurosawa will make a move to take Tokyo from the Tojo Clan and then use the resources acquired from this takeover to wipe out his enemies within the Omi Alliance. They also believe that he intends to attack Haruka's concert, both to distract the public from his takeover and to split Kiryu and his friends' efforts to stop him by forcing them to protect the concert as well. In response, the team start to formulate a defense strategy.

Kiryu and Majima have a heart to heart where Kiryu talks about all the things he's lost and why it hurts so much more now to be apart from Haruka. Majima brings up his own experiences with his depression, losing Park, and indirectly Makoto, as well as Kiryu's own struggles with getting over Nishiki and Yumi. The two end up on the same page more than ever before.

Akiyama meets with Patriarch Madarame and the Yamagasa, who tell him that they're ready should the need arise. The day of the debut concert, Kiryu's team makes preparations to go to the Japan Dome, when a news broadcast shows that an unknown group has taken the Majima Family's offices in Millenium Tower and is holding Saejima hostage. The city is attacked by gunmen wearing Majima family badges as Majima looks on in horror.

Kiryu, Majima, and Akiyama discuss their options. Majima notes that they already managed to capture him once, and that broadcasting Saejima’s location was clearly bait for him specifically. They’ll be expecting Majima, so they decide to send Kiryu to rescue Saejima. Majima instead will go to protect Haruka, while Akiyama will defend the streets. Akiyama calls forth the Yamagasa Family helmed by Yahata, the Kitakata Family, and the Nagoya Family with Mine in tow to fight the Omi in the streets, turning Kamurocho into a battleground.

Haruka's performance begins.

Kiryu storms the Millenium Tower once more, fighting his way through waves of enemies. He reaches the top of the tower to find Kurosawa waiting for him with a chained Saejima. Saejima grimly notes that they'd been expecting Majima to make an appearance. Kurosawa reveals that he has a sniper set up with his sights directly on Haruka. Kiryu is enraged, but Kurosawa says that the only thing they can do is fight each other.

Saejima fights Kiryu to a standstill, the tiger and dragon not managing to take each other out. They stop fighting as Saejima realizes something from looking at the broadcast.

Baba sits at Haruka's performance with sniper rifle in hand, unable to bring himself to kill the cheerful girl who had been kind to him, but desperately wanting back into the yakuza. His finger starts to twitch, and it's unclear whether he's going to go through with killing her when Majima intervenes, tackling him to the ground. Majima and Baba speak, with Baba recognizing him as Saejima's friend. Baba says that he HAS to kill her, and that it's the only way he can live. Majima can only see a soft young man trying to get back into the yakuza by killing an innocent girl, something he's all too familiar with. He resolves to beat Baba off the wrong path before it's too late.

Majima wins against Baba, thwarting the attempt on Haruka's life. Baba, deeply ashamed of himself, attempts to commit suicide. Baba is stopped from committing suicide by his friends from prison, who convince him to come back and serve out the rest of his sentence with them. Baba gives up on Morinaga's approval. Majima takes a moment to sit back and appreciate his ex's dream coming to pass in Haruka's performance. Then Majima takes the camera and starts making funny faces into it for fun.

Kurosawa is shocked as both Saejima and Kiryu are proud of Majima. He orders his men to kill both of them, but the men are shot by Daigo, who arrives having taken information from Katsuya's office and Nagoya to place Kurosawa at the center of everything. Saejima takes the opportunity to chokeslam Kurosawa to the ground, pinning him. The authorities are going to come after him soon enough. His scheme is out in the open and finished.

The chokeslam just about kills Kurosawa, who reveals that he really is sick and dying. He reveals the full extent of his plan; to wipe out the major figures of both the Omi and Tojo in order to leave the path open for his son to take control of both organizations. His son being Morinaga, who is currently probably cutting through the Tojo officers with Aizawa. Kiryu, Saejima, and Daigo are horrified. Daigo decides to take Kurosawa in and Kiryu and Saejima go to handle Morinaga and Aizawa.

Akiyama continues to defend the streets alongside the Yamagasa, Kitakawa, and Nagoya families, single-handedly doing much of the work. He's set upon by Kanai and his remaining forces, and fights him one last time. Akiyama beats Kanai but is about to be overrun by one final force. This force is stopped by Watase and his men, who beat back the remaining Omi and force Kanai to surrender. Watase, Mine, and the other families bow to Akiyama, the one who united all of them to protect the streets of Kamurocho. Akiyama is pleased.

Kiryu and Saejima arrive at Tojo Clan HQ to find Aizawa standing outside, his hands bloodied as he stands over several corpses. Saejima approaches him as Aizawa explains that he signed on with Morinaga because of the man's reputation as a man who'd put the yakuza first, put his family first. When Morinaga approached him about this plan, Aizawa couldn't tell him no. All the betrayal, the blood, all of it was for Morinaga. And now Aizawa feels he's in too deep. Saejima tries to tell Aizawa that he doesn't have to do what Morinaga says, but Aizawa tearfully disagrees. He won't betray Morinaga, and so prepares to fight. Saejima sees Baba in Aizawa, and resolves to make sure Aizawa doesn't end up the same way.

Saejima tells Kiryu to go find Morinaga, and that he'll hold Aizawa off. Kiryu agrees, and Aizawa attacks. Saejima holds Aizawa off long enough for Kiryu to head into Tojo Clan HQ, while Saejima and Aizawa fight on the streets outside. The two powerhouse brawlers duke it out, beating each other bloody. Finally, Saejima emerges victorious, leaving Aizawa on the sidewalk. Aizawa tearfully admits that he's done, and can't justify what he's doing any longer. He turns himself in, and Saejima walks him away, putting all his trust in Kiryu to get it done.

Meanwhile, Kiryu heads through a snowy courtyard into Tojo Clan HQ to find Morinaga standing over the bodies of each of the Tojo Clan leaders while holding a bloodied katana and a handgun. Kiryu asks what the hell Morinaga thinks he's doing. Morinaga laughs to himself and admits that he's not sure himself.

Morinaga explains that his entire life he worked himself into a killer for the Tojo Clan, racking up kills for them and doing their dirty work. And for his trouble he became a bodyguard to Daigo, a man who in his mind did not earn his rank. He only became chairman because of Kiryu's recommendation, not because of anything he did. Kurosawa reached out to Morinaga, telling him that he was his father, and that he was going to gift Morinaga both the Tojo and the Omi to rule over when he died.

Kiryu points out the hypocrisy in hating Daigo for his softness, while also being "gifted" both clans by his own father. Morinaga agrees whole-heartedly, admitting that he doesn't actually know what his dream actually is. But Kurosawa made the choice for him, believing that he knew what was best for his son. He has to follow the path that is expected of him, just like Daigo is. Kiryu grapples with the position he placed Daigo in, but doesn't have time to consider it as Morinaga rips his shirt off, revealing a tattoo of a baku– a dream eater.

Kiryu and Morinaga fight, their battle taking them from within the Tojo Clan to the snowy courtyard outside. Morinaga stabs Kiryu in the gut, but Kiryu breaks the sword and knocks Morinaga out. Kiryu staggers away as Haruka finishes her concert.

Haruka realizes that the dream she's been pursuing isn't actually hers. She gives a speech realizing that she was forced into being an idol by Park, and then when she died, she continued on with it out of obligation because Park became a martyr. She cares deeply for her mentor, but acknowledges that despite the fun she's had, she can't stay an idol. She wants to be with Kazum Kiryu, her real father. Haruka runs offstage to try to find him.

In a post-credits scene, Kiryu reunites with Haruka.