When Daniel Larusso decides not to compete in the upcoming karate championship, he becomes the target of vicious Cobra Kai student, Mike Barnes, who's determined to win the title back. Standing firm, Daniel's mentor and trainer, Mr. Miyagi, instructs him to ignore Mike's threats - and stay away from the tournament. But when Mike's relentless abuse escalates into blackmail, Daniel finds himself forced into competition - and at serious odds with Miyagi, the one person he cherishes most. Desperate, Daniel turns to another karate instructor, Terry Silver, whose violent combat techniques are directly opposed to Miyagi's wise instruction. But when Daniel realizes that Terry and Mike are allied with Mr Miyagi's old nemesis, Kreese, in an elaborate set-up for revenge, he also knows he has alienated the only person who can help him.