Based on a novel "The Battle Of The Yanagawa-Gumi" by Koichi Iiboshi, it tells the story of criminal Jiro Yanagawa. Released from prison, Jiro joins the notorious Yoshimizu Yakuza family as a member. Not long after however, he sets out to form his own Yakuza clan in Osaka. This sparks a bloody territory war with the Devils Dragons.

The movie is set one year after the events of Mafia Family Yanagawa - Part 1, in which 8 Yanagawas faced off against 100 Devil Dragons in an epic bloody battle. Jiro Yanagawa (Takeuchi Riki) continues his feud with the Devil Dragons as he attempts to usurp their western territory.