In September 1984, 17-year-old Daniel LaRusso moves with his mother Lucille from Newark, New Jersey to Reseda, Los Angeles, California. Their apartment's handyman is an eccentric but kindly and humble Okinawa Prefecture immigrant named Keisuke Miyagi.
Shortly after the All-Valley Karate Tournament, sensei John Kreese becomes furious and attacks Johnny in the parking lot. Miyagi confronts Kreese and passively immobilizes him. Miyagi threatens to strike a deadly blow but instead comically tweaks Kreese's nose and walks away.
Cobra Kai sensei John Kreese is now broke and destitute after losing all of his students. He visits his Vietnam War comrade, Terry Silver, a wealthy businessman who founded the Cobra Kai and now owns a toxic-waste disposal business. Silver vows to personally help him get revenge on Daniel and Mr. Miyagi and re-establish the Cobra Kai, sending Kreese on vacation to Tahiti to rest and recuperate.
Mr. Miyagi travels to Boston to attend a commendation for Japanese-American soldiers, who fought in the 442nd Infantry Regiment (United States) during World War II. He meets Louisa Pierce, the widow of his commanding officer, Lieutenant Jack Pierce. At Pierce's home, they catch up on old times and war stories.
Decades after the tournament that changed their lives, the rivalry between Johnny and Daniel reignites in this sequel to the "Karate Kid" films. More than 30 years ago, one of them took second place. This time, he wants to win — and he's got nothing left to lose.