Legends tell of young men who wear armor known as Cloths and fight using energy known as Cosmos, in service of the goddess Athena. They are known as Saints. In Japan, two Saints fight in a colosseum for an audience, with the host, Saori Kido, waiting for the Pegasus Saint. In Athens, Greece, a Japanese young man known as Seiya fights his rival Cassios, cuts off his ear and defeats him with his Meteor of Pegasus to earn the Pegasus Bronze Cloth. Later that night, before Seiya can return home, Cassios' master Shaina tries to kill him for revenge. Seiya wears the Pegasus Cloth and actually injures Shaina, but for a moment, he is unable to master the Cloth and his Cosmos. Shaina's men arrive to finish Seiya off, but thanks to his teacher Marin's advice, he turns the table and defeats her men with his Meteor of Pegasus technique. He also is able to break Shaina's mask to reveal her face. The next day, Seiya heads back to Japan.

The Bronze Saints in the colosseum, Lionet Ban and Unicorn Jabu, continue their tournament match, with Jabu emerging as the victor. Seiya returns and demands to see his long-lost sister Seika after training for six years in Greece. Saori's grandfather promised him that he would see her if he retrieved the Cloth. Saori Kido, granddaughter of the late Mitsumasa Kido, leader of the Graude Foundation, and host of the Galaxian Wars tournament, offers Seiya a deal: if he wins the tournament, the Foundation will find his sister. With words of encouragement from his childhood friend Miho, Seiya decides to participate in the tournament, since it is broadcast worldwide and his sister might be able to see him on television. Seiya's first opponent is Bear Geki, and because of his arms, Seiya seemed like he would die from strangulation. But thanks to his master Marin's teachings of defeating an opponent by crushing their greatest weapon, Seiya breaks Geki's arms, the source of his strength, launches hundreds of kicks and comes out victorious.

In Siberia, a young man named Hyoga is visiting his deceased mother in a sunken ship at the bottom of a frozen sea. Then, after destroying an eternal ice wall, he earns the Bronze Cygnus Cloth. Hyoga heads to Japan to participate in the tournament, with the grand prize: the Gold Cloth for the winner. After Saori gives a presentation about the significance of the tournament, Cygnus Hyoga finally arrives. Hyoga's opponent, Hydra Ichi, seems to have an advantage with his poisonous horns, coming from his fists and even knees, which keep regenerating like the Hydra's heads, but they are useless. Thanks to Hyoga's Cloth, the poison never penetrated his body. Ichi is defeated by Hyoga's Diamond Dust. Who will be Hyoga's next opponent, Pegasus Seiya or Dragon Shiryu?

The match between Pegasus Seiya and Dragon Shiryu begins. Shunrei, a close friend of Shiryu's, arrives and tells him that his master, Roshi, is dying and needs to come back to the Five Ancient Peaks of Lushan. Shiryu's Rozan Rising Dragon and his diamond hard shield make him unstoppable, and it seems he is on his way to victory after knocking Seiya down multiple times. But Seiya isn't willing to give up and risks his life to have Shiryu destroy both his fist and shield. With his weapons destroyed, and having been witness to Seiya's determination. Shiryu removes his Cloth and is eager to finish the match. Seiya removes his Cloth as well to have a fair fight, both ready to risk their lives to fight for what they believe in and the people they love.

Seiya and Shiryu's match continues. Even though Shiryu is able to block most of Seiya's Meteors, Seiya is not only able to land a few blows, but also discovers Shiryu's weak point, the right fist of the dragon on his back, which is the spot where his heart is located. If the Rising Dragon is unleashed and Shiryu, who unconsciously lowers his left hand and exposes his weak point, is attacked in that spot, he will die. Both strike each other, with Seiya hitting the weak spot, and winning the match. However, Shiryu's heart has stopped beating. With only four minutes before he succumbs, Seiya, with encouragement from his friends and the audience, attacks Shiryu in the same spot from the back, and restarts his heart, saving him. Meanwhile, Andromeda Shun's chain senses an enemy in the colosseum.

Andromeda battles against Unicorn Andromeda uses his chains to form a nebula chain (Andromeda Galaxy). Unicorn runs directly to Andromeda but his chains attacks Unicorn, thus impoosible for Unicorn to attack. He tried to attack Andromeda from the air but the chains still attack him in the air. Suddenly, the chains set a reaction and form a code for Andromeda. He wonders what is could be until at the end, his brother appears.

Phoenix Ikki attacks his brother, Andromeda, without mercy. He's full of hate against all Saints and Saori Kido, whose grandfather had sent him to Death Queen Island. Jabu tries to stop Ikki but he's defeated with one single punch. Then, the official battle begins, between Ikki and Nachi, Bronze Saint of Wolf, who has his mind completely destroyed by Phoenix's attack. Then, Ikki bids farewell to all and, along with his henchmen, the Black Saints, steals the Gold Cloth.

Seiya, Hyoga, Shiryu and Shun chases Ikki and his Black Saints through the city as they run away with the Gold Cloth. Kido's Foundation sends an helicopter after the enemies, but Ikki destroys it with a single strike. They hide in the harbor and Ikki finally wears the Gold Cloth, but Seiya finds and hits him, making the Gold Cloth fly away from Ikki's body and split up. The black saints get the cloth's parts and runs again. One by one, they're defeated by the Bronze Saints, but they only manage to recover both arms and both legs of the cloth. One of the defeated Black Saints reveals that they follow Ikki because four stronger Black Saints support Ikki, and that Ikki's real intent is to take over the world. The next morning, Shiryu returns to the Five Peaks of Rozan, taking the destroyed cloths of Pegasus and Dragon with him, in order to repair them. But a black shadow watches them carefully...