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John Kreese, his life in tatters after his karate school was defeated by Daniel and Miyagi, visits Terry Silver, a Vietnam War comrade. Terry is a ruthless businessman and martial arts expert, and he vows to help Kreese gain revenge on Daniel and Miyagi, and reestablish Cobra Kai. Upon returning from Okinawa, Daniel and Miyagi discover that their apartment building has been demolished, which brings Miyagi out of work. Going against Miyagis wishes, Daniel uses his college funds to realize Miyagis dream of opening a bonsai tree shop, and becomes a partner in the bonsai business.
After the utter and multi-levelled defeat of Cobra Kais former instructor, John Kreese, the disgraced and marginalised karate teacher pays a visit to his old Vietnam War buddy, the nefarious millionaire entrepreneur, Terry Silver, to plot his revenge. In the meantime, Mr Miyagi and Daniel-san venture into bonsai business, unaware that the evil partners, Terry and John, conspire to rob the All-Valley karate champion of his title by hiring the thirsty for fame and glory ruthless fighter, Mike Barnes. Eventually, against his mentors cautious counsels, Daniel will soon fall for the well-planned intricate trap. Could this be the champions humiliating downfall?
Ralph Macchio
Daniel
Pat Morita
Mr. Miyagi
Robyn Lively
Jessica Andrews
Thomas Ian Griffith
Terry Silver
Martin Kove
Kreese
Sean Kanan
Mike Barnes
Jonathan Avildsen
Snake
William Christopher Ford
Dennis
Randee Heller
Lucille
Pat E. Johnson
Referee
Rick Hurst
Announcer
Frances Bay
Mrs. Milo
Joseph V. Perry
Uncle Louie
Jan Tríska
Milos
Diana Webster
Margaret
Patrick R. Posada
Man #1
C. Darnell Rose
Delivery Man
Glenn Medeiros
Self
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