Four years after the events of Soulcalibur, set in 1590 AD. Nightmare and his followers were moments away from completing a soul restoration ceremony at Osthreinsburg Castle when three young warriors stormed the ruins and intervened. Soul Edge was defeated, and both swords were pulled into a void alongside the Azure Knight. Siegfried Schtauffen, freed from Nightmare's grip, set off on a journey of atonement — but every night the blade reclaimed his body, and four years later, Nightmare walks again. Across the world, warriors pursue fragments of the shattered Soul Edge, each driven to either possess or destroy the evil sword, as Nightmare resumes his rampage to restore it to full power.