Jesse Tyler, a martial arts enthusiast who lives in Los Angeles, California, and enjoys success in local karate competitions, faces turmoil in his life as a young business executive. The only child in a wealthy family, he has always been pressured to succeed in every aspect of his life.

After discovering that his father is at death's door, Mr. Miyagi sets out to Japan, to see him with Daniel. Upon arriving, Miyagi must confront an old rival. Meanwhile, Daniel encounters a new love, and some new enemies.

Young Jason Stillwell moves with his parents to Seattle, where local bullies harass them without mercy. Jason's father Tom does not believe in violence, so the family takes it on the chin. One day Jason enrolls in a martial arts class and quietly rises in rank to be a major contender. His mettle is tested in an international match against Ivan, a Russian champion.