Dan Hibiki is a great fighter! Trained by his father, the indomitable Go Hibiki in the Saikyo-Ryu style, Dan was a very proficient martial artist, who one day dreamed of opening up his own Saikyo school, dedicated to his father and his great teachings.

However, there is much controversy about Dan's past. It is evident that he recieved some schooling from the great Gouken, a master martial artist, in the style of Goutetsu Shotokan karate. It is unknown, however, whether he trained immediately after Ken and Ryu's departure, or after Gouken was presumed dead after his bout with Akuma. It is rumored that after Gouken's fateful fall from high in the mountains, his body washed ashore, and he has rescued and nursed back to health by Go Hibiki, a champion fighter. In thanks, he agreed to train Dan, and show him the ways of the chi, or spirit, one of the special skills that Go's training was unable to show Dan.

That all changed, though, one day, as Go recieved a challenge from a famous Muy Thai fighter named Sagat. Go and Sagat had a bitter battle, which resulted in the loss of one of Sagat's eyes. Burning with anger and a desire for vengeance, Sagat killed Go in a vicious, unrelenting onslaught, while Dan watched the fight. In tears, an enraged Dan told Sagat he would one day return the favor...

Dan then began training harder than ever, in hopes of obtaining revenge for his father's death. Gouken, however, was not amused by this. He sent Dan away, for fear that Dan's pent up anger would unleash his potential to access the Messatsu killing blow. Sending Dan away, he told him that a true warrior fights not out of anger, and banished him from his sight. And so, Dan went on his way.

What Dan found was the Alpha tournaments. In the first Alpha tournament, Dan entered upon hearing of Sagat's involvement. What he found however, was an even more massive and powerful Sagat then ever before. Sagat pummeled him without mercy, and if not for Ryu's intervention, Sagat would have killed him. Instead, Sagat tossed Dan aside and was defeated by Ryu. Ever since that day, Dan has hated Ryu and Ken as well for their interference.

Dan entered the second Alpha tournament to find Sagat again, but he could not find the fighter, who was sent to jail for his supposed crime of killing Adon. Satisfied that justice had, for now, been done, Dan returned home and began recruiting students to train in the Saikyo-Ryu style, still vowing vengeance upon Sagat once he emerged from prison.