The storyline starts in 1949, and follows an alternate history, with the timeline diverging into a war between the Soviets and the West. Following the defeat of the Nazis, Germany has been partitioned into Soviet and Allied zones of control, with the Soviets building up their military presence in readiness for a new war. During the Berlin airlift, a Soviet fighter collides with a US cargo plane, the Allies declare war on the USSR, and the next day Berlin becomes a savage battlefield between the two Superpowers. The player takes the side of either the USSR or the USA and its allies, with the storyline said to involve characters from the two previous Codename: Panzers titles.