Dragon Fighter III Evolution was the first and only update to Dragon Fighter III.
Dragon Fighter III Evolution continued the fighting mechanics from Dragon Fighter III making them a bit faster. Along with Survival mode, Team Battle mode, and Time Attack mode were introduced two new modes. "Iron Ball" mode, a bowling minigame where each character has different attributes. "Shadaloo Force" mode, a beat 'em up mini-game where the player with an over-the-shoulder perspective as they fight wave upon wave of M. Bison's Shadaloo Force through four stages, eventually facing M. Bison himself. The player can pick up health and power-ups while they fight waves of enemies.
Names in bold denote hidden fighters.