Dream Mode follows the backstories of the characters, each with different scenarios, which is similar to the first game. The scenarios will fall into one of the following categories:
- Hokuto Shinken - Kenshiro, Raoh, Jagi and Toki.
- Nanto Seiken - Souther, Rei, Shu, Juda and Shin.
- Lone Fighters - Select fighters of the age.
- Hokuto Army - Bat and Rin are teleported to the past.
- Others
