Mr. Miyagi and Daniel take a trip to Okinawa to visit Mr. Miyagi's dying father. After arriving Mr. Miyagi finds he still has feelings for an old love. This stirs up trouble with an old rival who he originally left Okinawa to avoid. In the mean time, Daniel encounters a new love and also makes some enemies.
Daniel accompanies his mentor, Mr. Miyagi, to Miyagi's childhood home in Okinawa. Miyagi visits his dying father and confronts his old rival, while Daniel falls in love and inadvertently makes a new rival of his own.