Ace Combat 3 is set within the United Galaxy Space Force saga, a fictional universe by Namco that connects many of their space-related games into a cohesive timeline. It takes place in a world where government and rule of law have been superseded by sheer economic power and multinational corporations. The largest of these are Neucom Incorporated and General Resource Limited, fierce rivals that have competed against each other for power for many years. Despite efforts of peace-making by the Universal Peace Enforcement Organization (UPEO), war eventually breaks out when Neucom launches large-scale strikes against General Resource, forcing the UPEO to deploy a series of fighters to end the rivalry between the two companies and put an end to the war.