Following the popularity of The Karate Kid film, Daniel LaRusso returns with Mr Miyagi for more karate action. This time Mr Miyagi's father is on his death bed so he has to return back to Okinawa to face his demons.
We find out Mr Miyagi's old love rival (now a powerful business man) is still holding a grudge against his old enemy. Daniel-san has come along for the ride and soon falls in love with Sato's (Miyagi's old foe) son's girlfriend.
With all this love tension building up, Sato finally makes peace and leaves Daniel and his son to fight to the death for the hand of the girl.