The Karate Kid Part II

After his dojo's loss in the 1984 All-Valley Karate Tournament, a furious John Kreese attacks his student Johnny Lawrence in the parking lot. Miyagi intervenes and passively immobilizes Kreese. He threatens a deadly blow but instead comically tweaks Kreese's nose and walks away. Johnny and his friends leave a humiliated Kreese and Cobra Kai behind.

Six months later, in June 1985, Daniel and Ali have broken up, and Daniel is staying with Miyagi after his mother accepts a job in Fresno. Miyagi receives a letter notifying him that his father is dying, prompting him to return to his home village on Okinawa Island. He tells Daniel that many years ago, he fell in love with a woman named Yukie. She was arranged to marry his best friend Sato, son of the richest man in the village and fellow karate student of his father. Upon announcing his intentions to marry Yukie, Sato challenged him to a fight to the death. Rather than fight, however, Miyagi left the country. Daniel decides to accompany him back to Okinawa.

Upon arrival, Miyagi and Daniel are greeted by Chozen Toguchi, who drives Miyagi and Daniel to one of Sato's warehouses and reveals he is Sato's nephew. Sato appears and demands to fight Miyagi, who adamantly refuses. Arriving at the village, Miyagi and Daniel are welcomed by Yukie and her niece Kumiko. They discover that Sato has become a rich industrialist whose supertrawlers have destroyed the local fish population, impoverishing the other villagers. They are forced to rent property from Sato, who owns the village's land title. Yukie reveals that she never married Sato because of her love for Miyagi.

Miyagi's father dies, and Sato gives him three days to mourn out of respect before their fight. Miyagi shows Daniel the secret to his family's karate – a handheld drum that twists back and forth illustrating the "drum technique", a counter-striking karate move that Daniel begins to practice. Daniel and Kumiko begin to develop a romance.

Daniel unintentionally exposes corruption in Chozen's grocery business during an encounter in the village. Chozen accuses Daniel of insulting his honor, and they have a series of confrontations. The feud escalates when Chozen and his cronies attack Daniel and vandalize Miyagi's family property, but Miyagi fends them off. He and Daniel plan to return home before the situation gets worse, but Sato threatens to destroy the village if Miyagi refuses to fight. Miyagi finally agrees on the condition that Sato signs the village's land title over to the villagers regardless of the fight's outcome. Sato reluctantly concedes.

On the day of the fight, a typhoon strikes the village forcing everyone to take shelter. Sato's dojo collapses, leaving him trapped in the wreckage. Miyagi and Daniel rush to rescue him, and Daniel ventures back out to rescue a child trapped in a nearby bell tower. Sato orders Chozen to help, but when he refuses, Sato rushes to assist Daniel himself. He publicly shames his nephew and disowns him. An enraged Chozen runs off into the storm in disgrace.

The next day, Sato returns asking for Miyagi's forgiveness. He vows to help rebuild the village and relinquish the title to the villagers. He also agrees to host the O-bon festival in a nearby ceremonial castle, inviting Daniel to join. During the celebration, a vengeful Chozen ziplines into the presentation and takes Kumiko hostage, demanding to fight Daniel to the death. Daniel fights bravely but is eventually overwhelmed by Chozen. Miyagi, Sato, and the crowd respond by twisting handheld drums in unison, inspiring Daniel to utilize the drum technique to defeat Chozen. Daniel grabs the vanquished Chozen and threatens to end his life saying, "Live or die, man?!" Chozen chooses death, but remembering the way Miyagi handled Kreese earlier, Daniel instead playfully tweaks Chozen's nose and drops him to the ground. The onlookers cheer as Daniel and Kumiko embrace.