Plot

The Miyagi Do students struggle to put aside past rivalries while training for the Sekai Taikai. Johnny and Chozen clash over rebranding the dojo.

Johnny and Chozen prepare to fight over the dojo's name, with Daniel caught in the middle. Tory and Sam question their relationship, while Shawn advises his younger brother Kenny to co set aside his anger and decide what kind of man he wants to be.—Gislef

After the battle with Terry Silver and Cobra Kai, the karate senseis and students enjoy a period of peace in the Valley. Johnny and Carmen eagerly look forward to the birth of their child, Robby and Miguel have become unofficial brothers, and the whole family is living together between Johnny and Carmen's apartments along with Carmen's mother Rosa. At the LaRusso household, Anthony has become proficient in karate after practicing with Sam, and Daniel and Amanda are happy to put the troubles of the past months behind them now that Terry Silver is in jail, though Chozen is still living with them. The students of the previously warring dojos have come together as friends, with even Kenny and Anthony maintaining an awkward truce. Robby is approved for re-enrollment at West Valley High School, joining his friends and a much happier Tory for the first day of Senior Year. As Daniel drives home from work, he passes the defunct Cobra Kai flagship dojo, and sees the signage being torn down and thrown away.

Daniel basks in the feeling of freedom after so much conflict. Amanda is still wary, concerned that Terry Silver could find a way to get the charges against him dropped, and John Kreese could cause trouble now that he's escaped from prison. Daniel assures her that even if Silver was released, his reputation has been ruined, and if Kreese ever returns, he would be arrested immediately. Aside from that, Amanda wonders if, with Sam applying to college and Anthony starting high school, it is a wise idea to be entering Miyagi-Do and Eagle Fang into the world karate championships of the Sekei Taikai. Daniel tries to put her at ease by revealing that after the tournament he plans to retire from being a full-time sensei, wanting to go out by sharing Mr. Miyagi's karate with the world. Johnny meanwhile is taking Miguel and Robby to training, excitedly rambling about the fame and expansion opportunities that will follow if Eagle Fang wins the Sekei Taikai. The boys think he's getting a bit ahead of himself, but Johnny is determined to make Eagle Fang a worldwide sensation. He decides to bring them to the Eagle Fang dojo for extra training before heading to Miyagi-Do, only to find the abandoned factory unit it was housed in being demolished.

At the Miyagi house, Mitch rejoins the other students, who are reluctant to accept him back after his betrayal during the Cobra Kai fight. However, after demonstrating his loyalty via custom Miyagi-Do/Eagle Fang t-shirts, Chris allows his best friend to come back into the dojo. Miguel and Robby feel bad for Johnny after losing his makeshift dojo. They also notice that while most of the rest of the combined students have become friends, Sam and Tory are still avoiding eachother. Hoping to help the girls find the same friendship they have found since making peace, they determine to find a way to thaw the ice still between them. A crestfallen Johnny finds Daniel and Chozen in the dojo and explains what happened the Eagle Fang dojo. Daniel is sympathetic, but explains that he moved Johnny's lesson to the next day to allow Chozen the opportunity to bring the new students up to speed on Miyagi-Do. Demitri and Eli come and ask the senseis if they can make an announcement before training starts. They gather everyone outside and congratulate them all on how far they've come, and remind them of whats at stake with the Sekei Taikai. In an effort to promote unity within the dojos, the students have come together to vote on a new dojo name: Miyagi-Fang, along with a new logo depicting a caricature of Mr. Miyagi with fangs. Daniel, flustered, meets with Johnny and Chozen privately, determined not to depict his oldest friend as a "karate vampire". Johnny suggests alternative names, each more Eagle Fang than Miyagi-Do, and Chozen sides with Daniel, wanting to keep the tradition and honor and history of Miyagi-Do instead of compromising it with the new, untested Eagle Fang. He and Chozen argue, and they mutually agree to fight for the right to decide the official dojo name, against Daniel's wishes.

Miguel and Robby take Sam and Tory on a double date to Golf n' Stuff, though neither of the girls is very happy about it. Robby tells Tory it was Miguel's idea to try and help them get along. Tory confides in him that she is feeling strange and awkward training with Sam at her dad's dojo, trying to unlearn everything she's ever been taught, and Sam admits to Miguel that she is unsure weather Tory is genuine about wanting to learn a better way of doing karate, or if she is just using them to get to the world tournament. The boys tell their girlfriends to give eachother a chance. They see Kenny playing alone, and Robby confesses that his former protege has refused to talk to him since the events at the flagship dojo. He desperately wants another chance to get through to him, and goes to try one last time. Daniel finds Johnny and asks him to call off the fight, telling him that Chozen got worked up and didn't mean what he said. Johnny will only do so if they go to the tournament as Eagle Fang. Daniel tries to reason with him, but Johnny is tired of Eagle Fang being treated as a lesser dojo, saying he built it from scratch, took it to the All-Valley Tournament, and made it his own. He'll drop the matter if he loses the fight, but if Daniel wants the match canceled, he'll have to talk to Chozen. Soon after, Johnny gets a text from an unknown number telling him to come to Coyote Creek, along with the message "Cobra Kai never dies". At Golf n' Stuff, Miguel awkwardly tries to get a conversation going with Tory and Sam. The topic falls on colleges, with Miguel having applied to his first choice, Stanford University, and Sam feeling overwhelmed at her choices. They ask Tory, but she says there are not many options available to a former juvenile delinquent, and the conversation stagnates. Robby finds Kenny and tries to talk to him, but Kenny ignores him. Robby explains that he knows it was his fault Kenny joined Cobra Kai, but he tried to get him out with him as soon as he realized they were wrong. Its not too late for Kenny to join Miyagi-Do with him and Tory and learn the right way. Kenny's older brother Shawn finds them, having been released from Juvie. He tells Robby he heard that he brought Kenny into his 'karate cult', then abandoned him. Robby admits he made mistakes, but asks for the chance to rectify them. Shawn warns him to stay away from his little brother, or else, and heads to the other side of the arcade. The others catch up with him and Robby fills them in about Shawn. They can tell he isn't ready to give up on Kenny, and say they'll have his back if he keeps pushing.

Daniel finds Chozen training by striking a wooden log with his hand, which the Okinawan master says with help strengthen his body as well as his resolve. Daniel wonders if they can instead find another way to solve his dispute with Johnny, but Chozen assures him he'll win the fight. Daniel is more concerned that no matter the outcome, it will divide the senseis once again, causing fractures within the students. He knows that Johnny won't ever really change how he does things, but he is wondering why Chozen has been so aggressive lately. He asks his friend if he has been drinking, but Chozen has sworn off alcohol since losing the fight against Silver. Daniel tells him Silver took advantage of his mercy, and they both agree it was nothing to be ashamed of, but Chozen is still angry. Daniel suggests he take a break from the dojo and go home to Okinawa for a little while, but Chozen refuses, saying there is nothing for him there. When Daniel presses, Chozen admits that he drunkenly called Kumiko the night of the Cobra Kai fight and confessed his true feelings for her, but she never called him back, leaving him to assume she does not feel the same way. Daniel feels sorry for him, but tells him fighting Johnny won't make it better. Chozen tells him that fighting for the legacy of Miyagi-Do is all that matters to him now. Johnny goes to Coyote Creek and finds not Kreese, but Stingray, haphazardly training a group of young children in Cobra Kai, complete with signs and logos and a recording of Kreese teaching. He heard that there was a dispute over dojo names, and presents his solution: Johnny taking back Cobra Kai for himself.

Kenny and Shawn go to the batting cages at Golf n' Stuff, but Robby comes calling soon after, appealing to them both to listen to him. He tells Shawn if Kenny doesn't get the proper training, and an outlet for his suppressed anger, then someday he will snap and end up in Juvie just like they did. Shawn tells him it's not his business, but Robby disagrees. Shawn shoves him, and Robby refuses to back down. He doesn't want to fight, but he won't leave this alone. Kenny wants to just leave, but Shawn makes good on his threat and attacks Robby. Robby defends himself, but Shawn quickly throws him back. Miguel jumps in and trips Shawn, shouting that they don't need to fight. Kenny goes on the attack himself, but Miguel is easily able to repel him. Tory stops him from grabbing metal baseball bat, chastising him for such a reckless and violent decision. He tells her he doesn't want to hit a girl, but Sam backs her up and assures him he won't. The boys keep Shawn busy while Sam and Tory try to get through to Kenny, and they stop him from leaving until he hears what they have to say. Shawn sees them working together to stop Kenny without hurting him, and after a moment tells his little brother it's time to go, security is on their way. They quickly leave, and the others wonder if it did any good. Still, Sam tells Tory she is impressed with how fast she's picked up Miyagi-Do, Tory joking that she's fought her so much that it must have rubbed off on her. They laugh, and the boys are hopeful that at least their plan may have worked. At Coyote Creek, Johnny asks Ray why he would bring back Cobra Kai after all he went through trying to take it down. Ray tells him that it was badass under Johnny's charge, and they have a chance to train up the next generation. He knows Cobra Kai has a terrible reputation, but with Johnny back he could make it better than ever, saying that he helped Ray find self-respect. He says that LaRusso is great, but he can't teach Johnny anything he doesn't already know, and thinks its time for Johnny to be back in charge where he belongs, to take Cobra Kai's spot at the Sekei Taikai. He shouldn't have to share the glory with anyone else. At Kenny's house, Shawn finds him whaling on a punching bag in frustration. He's impressed by Kenny's stamina, though he points out he still couldn't get past the girls. Kenny says they are all terrible people, but Shawn disagrees. He witnessed all four have clean shots against him and Kenny and go out of their way not to take them. When Kenny calls Robby and Miguel weak, Shawn points out the obvious falsehood. He notes Kenny's change in personality since he went to Juvie, and Kenny tells him he knows what the world is like now. Shawn questions him learning life lessons from a man who got himself arrested, wondering if Silver is the one who taught him to be so aggressive. Kenny states the Cobra Kai creed; Strike First, Strike Hard, No Mercy, but Shawn calls it out as an idiotic way to live life, and suggests maybe Robby's dojo would be good for Kenny after all. Kenny rejects the idea, saying he has to follow his own instincts, but Shawn says he saw the look Kenny go when he was fighting, the same look that Shawn had when he snapped and went to jail. He tells him to learn from his mistakes, and to give Robby the benefit of the doubt. He says it's time for Kenny to decide what kind of person he wants to grow up to be, but Kenny admit he doesn't even know who he is, let alone who he wants to be, and Shawn comforts his hurting little brother.

Daniel returns home and informs Amanda that his peacemaking attempts did not go well. He wonders if maybe they should drop out of the Sekei Taikai altogether, since they only joined it to stop Silver anyway, and the pressure seems to be getting to them. Samantha comes home in a joyous mood, and tells her parents that her and Tory seem to have finally gotten past the last of their hostility and found a common ground, and are ready to work together to win the championship. Daniel finds himself having to reconsider dropping out, and Amanda points out that if Sam and Tory of all people can work together, then anyone can. The next morning, Daniel finds Chozen preparing for the fight at Miyagi-Do. He tells him that he has changed his mind, and will cede the name of the dojo to Eagle Fang. Mr. Miyagi didn't care about legacy or fame, he just wanted to teach karate the right way. Training and going to the tournament under a unified dojo is more important than fighting eachother over the name. Chozen reluctantly agrees. However, Johnny arrives and tells the two of them that he's decided not to dispute the dojo name. After a lot of thought, he's realized that Eagle Fang is just Cobra Kai under a different name. It always did and always will belong to Kreese, and Johnny wants nothing more to do with him or his legacy. Working with Daniel and Chozen has made Johnny a better sensei, and he wants to help them win the championship and ensure the legacy of Daniel's sensei instead. So he will dissolve Eagle Fang, and join Miyagi-Do. Daniel humbly accepts, relieved that he and Chozen won't fight after all. They both say they are going to fight anyway, just because they can. Daniel referees as the two senseis enjoy a friendly match.

The students practice together. Samantha teaches Tory the Miyagi-Do kata, and Kenny arrives at the dojo, Robby welcoming him. Daniel adds Johnny's eagle to the official Miyagi-Do gi patch, and the now fully united senseis prepare their students to begin working in earnest towards the world championship. Meanwhile, across the world, Kreese goes Kim Da Eun's dojang, and tells her students to inform her of his arrival.