Decades after their 1984 All Valley Karate Tournament bout, a middle-aged Daniel LaRusso, and Johnny Lawrence find themselves martial-arts rivals again.

Johnny Lawrence is at his lowest point as a jobless handyman haunted by his wasted life. When he rescues a bullied kid from bullies, he is inspired to resurrect the notorious Cobra Kai dojo. It also resurrects his old rivalry with Daniel LaRousso. Daniel is a successful businessman who may be happily married but is missing an essential balance in life since the death of his mentor, Mr. Miyagi.

A kung fu master travels to the U.S, where his student has opened a Wing Chun school, which has upset the local community.