Although its characters, themes and weapons evoke samurai cinema set in feudal Japan, Bushido Blade actually takes place in the modern era — made clear, for instance, by a stage set on a helicopter landing pad in a large city.
A fictional 500-year-old dojo called Meikyokan teaches the discipline of the master Narukagami Shinto, and within it dwells a society of assassins known as Kage ("Shadow"). Once led by the honorable swordsman Utsusemi, the Kage passed to Hanzaki, another skilled member, after a fierce duel. Hanzaki earned respect as leader until he discovered a cursed blade called Yugiri, which began to corrupt him — and he started to abandon the group's honor and traditions.
One day a Kage member flees the dojo carrying its secrets. Under penalty of death, several others are dispatched to eliminate the defector, finally cornering the runaway in the ruins of the surrounding Yin and Yang Labyrinth Castle. In single-player mode, regardless of which fighter you select, you play as the escaped assassin, cutting your way to freedom by killing your former comrades one after another. The story's details shift depending on the character chosen.