Dead or Alive Xtreme Beach Volleyball is a beach volleyball game. The game is a departure from the rest of the Dead or Alive series which otherwise consists of fighting games. It also marks the first game in the series to have a Mature rating due to the very revealing swimsuits featured in the game and the suggestive poses the women present themselves in (which can be viewed and zoomed in on from almost any angle, as controlled by the player).

Zack gambles his winnings from the Dead or Alive 3 tournament at a casino. In the process, he hits the jackpot, earning a ridiculously large sum of money. The money is used to purchase a private island, which he promptly turns into a resort named after himself ("Zack Island"). He then invites the women from the previous tournament (along with one newcomer — his girlfriend, Niki) to his island under the pretense that the next Dead or Alive tournament will be held there. The women arrive and after discovering the truth, (namely that it was merely a hoax) decide to make the best of the situation by spending two weeks vacationing on the island.