The , released in mid-2016, was a pivotal moment for the game, primarily noted for delivering the highly anticipated "A Shadow Falls" cinematic story mode and significant cosmetic adjustments. Content and Feature Expansion

The update also expanded the in-game shop and currency systems. Players could finally use their earned Fight Money to purchase new stages, character costumes, and the "Air Force Base" stage, which served as the perfect nostalgic backdrop for Guile. This update moved the game closer to the robust feature set fans expected, bridging the gap between its initial bare-bones launch and its eventual evolution into the Champion Edition.

: Significant improvements were made to reduce the time spent in loading screens and to refine the quality of online matchmaking. Air Throw Normalization