Gouken, which roughly translates to "Great Fist," is a warrior monk who lives on his own in a temple deep in the mountains of Japan. He is a scholar, philosopher, and seeker of honor. Gouken is the former sensei of Ryu and Ken Masters. He is the son of Goutetsu and brother to Gouki, who later became known as Akuma. Because of his great skills, he has become world reknown, and had been nicknamed "Sheng Long" (The Sky Dragon, or "Rising Dragon" for the unrivaled power of his Dragon Punch) by those precious few who have ever been lucky enough to have seen him fight. He trained Ryu and Ken in the style he and Gouki learned from their father, and seeks that all his students answer the question: "What is the meaning of victory?"

The Shotokan fighting style which Goutetsu was trained with allowed its practitioners to kill with a mere strike. The secret of this deadly technique was the focusing of the powerful forces of destruction. Goutestu decided to banish the use of this, the Messatsu killing blow, and taught his two young sons, Gouken and Gouki a gentler version of the Shotokan arts he was trained in. Gouken passed this version of the style to Ken and Ryu.

After the first Street Fighter tournament, Ryu and Ken returned to Gouken's dojo to train. But they found their master locked in combat with Akuma high up in the mountains. They watched the apparent slaughter of their master as he fell victim to the Messatsu killing technique, and plunged to the falls below. Akuma merely swatted the boys aside as they attempted to avenge the death of their master, and told them to seek him out when they were strong enough.

But rumors persist that Gouken survived, perhaps washed ashore, barely alive, after his battle with Akuma. The evidence is the appearance of another Shotokan fighter named Dan Hibiki, with intact, yet incomplete Goutetsu Shotokan-style moves. Rumor has it that Gouken helped train him as thanks for Dan's father Go Hibiki finding him ashore and saving him. But upon his father's murder by Sagat, Dan wanted nothing but revenge, so Gouken was rumored to have sent him away, as he was a danger if he unsealed the killing techniques. And so it is said that Gouken returned to his homeland, and trained in secret. It is also rumored that he had unsealed the Messatsu killing blow, and seeks a confrontation with Akuma...His friend and Ken and Ryu's former training partner, Retsu, is rumored to be searching for Gouken ever since his disappearance...