Mr. Miyagi decides to take Julie, a troubled teenager, under his wing after he learns that she blames herself for her parents' demise and struggles to adjust with her grandmother and fellow pupils.

Despondent over the closing of his karate school, Cobra Kai teacher John Kreese joins a ruthless businessman and martial artist to get revenge on Daniel and Mr. Miyagi.

Summoned by his dying father, Miyagi returns to his homeland of Okinawa, with Daniel, after a 40-year exile. There he must confront Yukie, the love of his youth, and Sato, his former best friend ...