The Karate Kid Part III (Movie)
In September 1985, John Kreese, broke and destitute after the loss of his students due to the events in the 1984, visits his Vietnam War comrade, a wealthy businessman named Terry Silver. Silver vows to personally help him get revenge on Daniel and Mr. Miyagi and re-establish Cobra Kai. Silver sends Kreese to Tahiti to relax and hires Mike Barnes, a vicious national karate champion, to challenge Daniel at the upcoming All-Valley Karate Tournament.
Upon returning to Los Angeles from Okinawa, Daniel and Miyagi discover that the South Seas apartment complex is being renovated, leaving Miyagi unemployed and Daniel homeless. Daniel uses his college funds to help finance Miyagi's dream of opening a bonsai shop, and Miyagi makes him a partner in the business.
Visiting the pottery store across the street, Daniel meets one of the employees, Jessica Andrews (whose Aunt Pat owns the shop). He later finds out that she is from Columbus, Ohio and has not made any friends yet during the two months she has worked there. After seeing a picture of her rock-climbing with a man whose face had been torn out of the photo (because he started seeing another girl), they plan to go out on a date that evening. However, when Daniel comes to pick Jessica up, they decide to just be friends as he learns that Jessica has made up with her boyfriend.
Later, Barnes and his friends Snake and Dennis harass Daniel and Jessica (while they are in the bonsai store sharing Mac and cheese that she made), and even steal the bonsai trees from Miyagi's shop. In order to replace the missing trees, Daniel and Jessica decide to dig up and sell a valuable bonsai tree that Miyagi brought from Okinawa. As they retrieve it, Barnes and his friends appear and retract their climbing ropes, demanding that Daniel sign up for the tournament. He asks Miyagi to train him for the upcoming tournament, but Miyagi refuses due to his principles.
Silver offers to train Daniel for the tournament at the Cobra Kai dojo with a series of brutal, violent techniques, which alienate Daniel from Miyagi and lead him to violently attack a stranger. Daniel apologizes and makes amends with Jessica as she is packing to go home. She forgives him, and encourages him to make amends with Miyagi. He also promises to send her a Christmas card as he leaves.
Later, after apologizing to Miyagi (who also forgives him), Daniel visits Silver to tell him he will not compete at the tournament, but Silver discloses his true agenda as Barnes and Kreese (whom Silver had previously claimed was dead) appear. Barnes begins to beat on Daniel, but Miyagi intervenes and defeats Kreese, Silver, and Barnes. Then, he finally agrees to train Daniel.
At the tournament, Barnes reaches the final round to challenge Daniel. Silver and Kreese instruct Barnes to make Daniel suffer by successively gaining and losing points by using illegal tactics. They taunt him and shout racist insults at Miyagi. The match ends in a sudden death overtime. Daniel wants to quit, but Miyagi urges him to continue, saying that whilst its ok to lose to his opponent, Daniel must not lose to his fear and that his best karate is still inside of him. With this encouragement, Daniel performs the Kata, and strikes Barnes to win the tournament, causing Silver and Kreese to become disgraced and ending their plans to revive Cobra Kai.