The main feud heading into WrestleMania was between Hulk Hogan and Randy Savage, with the two battling over the WWF Championship. At WrestleMania IV in March 1988, Savage defeated Ted DiBiase in a tournament final to win the vacant WWF Championship with help from Hogan. As a result, the duo formed a tag team known as The Mega Powers. They feuded with many heel tag teams throughout the entire year and were a successful team. Mega Powers ruled and dominated the WWF for 16 months. However, their domination and tag team began to breakup in early 1989. This all began on January 7, 1989 at Saturday Night's Main Event, Hogan was mercilessly beaten by The Twin Towers after his match with Akeem. Savage came out and cleared the ring with a steel chair. Elizabeth took Hogan to the backstage which angered Savage. He thought that he was a third wheel and this was the beginning of the breakup of Mega Powers as Savage was angry that why his wife Miss Elizabeth was used by Hogan as his manager. He confronted her about the issue but she took Hogan to the backstage. Problems increased further in the Royal Rumble match where Hogan accidentally eliminated Savage as he was trying to eliminate Bad News Brown. On February 3 at The Main Event, Hogan and Savage faced The Twin Towers (Akeem and The Big Boss Man) in a tag team match, filled with controversy. During the climax of the match, Akeem threw Savage and Hogan did not help Savage. Instead, when Akeem began taunting Elizabeth, Hogan came out to help her. Savage questioned what was happening but Hogan did not reply. Hogan picked and took her to the backstage. He was caring about Elizabeth while Savage was alone handling Twin Towers. When Hogan came back, Savage slapped him in the face and took the belt in his hand and turned heel by abandoning Hogan. Despite this, Hogan managed to pick up the win. This began a feud between the two. Hogan challenged Savage to a match for the WWF Championship at WrestleMania, which Savage accepted.
The second main feud heading into WrestleMania was between Rick Rude and The Ultimate Warrior over the WWF Intercontinental Championship. Rude and Warrior were booked to face each other in a "Super Posedown" at Royal Rumble in January 1989. Rude was better in every posedown because of his ability, muscles, good body and techniques but Warrior won the posedown because fans gave him a good reaction while Rude was given a bad reaction. The winner had to be decided by a fan reaction, where Warrior won the posedown. After the posedown, a furious and angry Rude attacked Warrior. This lead to a feud between the two and an Intercontinental title match at WrestleMania.
The other main match on the undercard was Demolition (Ax and Smash) versus Powers of Pain (The Barbarian and The Warlord) and Mr. Fuji in a handicap match for the WWF Tag Team Championship. Demolition was a dominant heel tag team since its debut in early 1987. They defeated Strike Force (Tito Santana and Rick Martel) for the titles at WrestleMania IV. They had a successful feud with The Hart Foundation during their early reign. In the summer of 1988, a powerhouse babyface tag team Powers of Pain debuted and feuded with Demolition over the tag titles. At Survivor Series, Demolition's manager Mr. Fuji turned on them after causing them to lose their Survivor Series match, culminating in a double turn as Demolition turned babyfaces and Powers of Pain turned heels. Powers of Pain made Mr. Fuji their manager, leading to their WrestleMania encounter with Demolition for the tag titles in a 3-on-2 handicap match.
Card:
WWF Title
Hulk Hogan VS Randy savage
Terry Taylor VS Bobby Heenan
Jim Duggen VS Bad News Brown
Intercontenental Title
RicK Rude VS The Ultimate Warrior
The Hart Foundation VS Greg Valentine & The Honky Tonk Man
Jake Roberts VS Andre The Giant W/ Big John Studd As Special Referee
The Brainbusters VS Tito Santana & Rick Martel
Dino Bravo VS Ron Garvin
Tag Team Title
Demolition VS The Powers of Pain & Mr. Fuji
Curt Hennig VS The Blue Blazer
The Bushwhackers VS The Rougeau Brothers
Ted DiBiase VS Brutus Beefcake
Akeem & Big Bossman VS The Rockers
Hercules VS King Haku
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