Even though the Decepticons have been driven off Earth, a small team of Autobot Pretenders have remained behind, just in case. Led by Metalhawk ("Hawk" in his human identity), the Pretenders live among the humans, using their Pretender shells to assume human size and appearance. The Autobots' caution is rewarded: Decepticon Pretenders soon appear, led by a mysterious force called Devil Z. The Autobots and Decepticons soon build up their forces, recruiting humans to become Junior Headmasters and Godmasters (Powermasters).

The planet Libertia was once known as “the planet of death”, until humanity built three giant mirrors and created what seemed like an ideal land. It is on this planet that Professor Grace and his granddaughter Alcia live peacefully… until their home is attacked by Guild soldiers looking for the professor and for Legaciam – a special Armor that can resist extreme heat, allowing it to go to areas where humans would not survive normally. Alcia, who was at the time piloting Legaciam in order to help her grandfather with the testing, manages to get away… barely. But the Guild is determined to get Legaciam by any means necessary…

The world is a dark, brooding place populated by humans, but ruled in reality by powerful beings known as the Darkstalkers, and there is constant conflict between them as they try to determine who is the most powerful of them all. Zombies, vampires, werewolves - all of them compete in contests of strength and sheer will to attain their own personal goals. All of this becomes moot when a race of Aztec robots called the Huitzil decide that humanity isn't worth saving, and start waging war on the world, while in the sky, a solar god from outer space plots the conquest of Earth. And the Darkstalkers must become unwilling allies in order to save the world.

A new tournament, Squad Jam 3, has been announced in the popular VR game Gun Gale Online. This time, Pitohui, one of the best performers in the previous competition, offers to team up with Karen Kohiruimaki, better known in-game as LLENN, the "Pink Devil." Despite her initial reluctance, Karen agrees to join Pitohui's team, LPFM, since she looks forward to facing SHINC, her rivals from the previous Squad Jam. The newly formed LPFM enrolls in the tournament and is quickly recognized as the favorite to win due to the caliber of its players. As they strive to come out on top and win Squad Jam 3, LLENN, Pitohui, and the other members of LPFM battle against other competitors and tackle unexpected challenges.