Final Fight 3 is almost identical to the previous two SNES installments. The Mad Gear gang has been destroyed and, because of this, the Skull Cross gang has gone rampant in Metro City. Now, it is up to mayor Mike Haggar and Guy (along with newcomers Dean and Lucia) to stop them once and for all.

Like the previous games, this game is a side-scrolling fighting game similar in style to the Double Dragon and Streets of Rage series. In addition to using various punches, kicks, and special attacks, players can also pick up and use various melee weapons lying on the streets, such as bottles, lampposts, metal pipes, barrels, etc.