The stage takes place inside of "Mesón De Las Flores" (Spanish for "Inn of the Flowers"), a type of cantina located in an alley from a town in Spain. It has a membership system, where members gamble and deal with illegal business such as the trade of narcotics. It is mostly popular for its modern pankration event, Street Fight. Vega is the star of the event, having many consecutive victories. In Street Fighter II, Vega's battle against a street fighter that travelled the world is the main event.
Just like in SFII, there is a fence that slams down onto the arena once the fighters enter battle. Behind the fenced off area above the arena are guitarists playing music, with flamenco dancers dancing to the rhythm against the backdrop of a mural of a bullfighter and a bull. A crowd of spectactors are watching the battle seated on benches with tables. There are barrels of wine against the wall.
- The usage of Flamenco Tavern is prohibited in competitive Street Fighter V play. This is due to Vega being able to interact with the fence when fighting on the stage.