Plot

The search for clues about Mr. Miyagi's past leads Daniel into danger. Miguel raises doubts about Robby's focus. Sam observes ugly behavior off the mat.

In the next round of the Setai Taikai, things don't look good for Miyagi Do. Daniel goes AWOL looking for clues to Mr. Miyagi's past, leaving Johnny to pick up the slack. Robby continues to be plagued by doubts about Tory's actions, and the rest of the team follows his lead.—Gislef

The Sekai Taikai is in full swing, and the competition is brutal. Cobra Kai holds their own well in the various matches, but Miyagi-Do falls behind as they struggle to keep up with the more experienced dojos. They also face other problems in the form of Daniel and Johnny's conflicting coaching styles, as both senseis have their own ideas for what to do to regain ground, as well as Robby, who is distracted by his troubles with Tory. After a disappointing first event, the Miyagi-Dos and their senseis return to the hotel. Daniel reminds them that they are up against the very best, but also among the best themselves, and tells them to get some rest and try to put it behind them in preparation for the next round. His words do little to bolster the students' spirits, and Johnny is skeptical, but the kids go up to their rooms. Chozen is nursing a tremendous hangover and will be out of commission all day, and Johnny takes Daniel to task for what he sees as encouraging passivity in the students while the more aggressive fighters dominate them on the mat. Daniel reiterates the Miyagi-Do methods, but Johnny reminds him that if they don't rack up enough points before going into the elimination round at the end of the day, then they won't have a chance. Daniel tells Johnny that they need to be on the same page if they want to have a prayer of defeating dojos like the Iron Dragons, who have fighters from around the world, plus their sensei, Sensei Wolf, is a former three-time world champion. Johnny is fed up with waiting for the Miyagi-Do style to actually help them in a match, and Daniel points out that Johnny's continual lack of genuine acceptance of Miyagi-Do is exactly what is holding them back. Johnny thinks Daniel is being naive for wanting to honor his mentor's legacy instead of doing whatever it takes to help their students win, but before they can argue further the concierge gives Daniel a package that was delivered for him. It is a letter stating that Master Serrano has been contacted and can meet with Daniel that very morning. It promises information about Mr. Miyagi, and gives an address some ways away on the other side of the city. Daniel tells Johnny he needs to leave immediately, but Johnny is confused about what could be more important than the tournament. Daniel merely tells him that he will be back in plenty of time for the next event, and Johnny warns him not to bother coming back until he's gotten some sense into him. On his way out, Daniel passes a very smug and confident Kreese.

Devon and Samantha head back to their room to rest, Devon embarrassed about losing her match so badly earlier. Sam says they all did poorly, wishing that Johnny would stop being so stubborn about working with Daniel so they could coach them properly. Devon is defensive of Johnny, but Zara, the Iron Dragons' female captain, gets onto the elevator with them. She is live streaming to thousands of fans on social media, apparently having acquired several sponsors over her tournament career, before signing off. She is very vein, looking down on the two girls, and after she leaves they bond over a mutual disgust of her behavior. In their room, Miguel, Hawk, and Dimitri talk through the day, Dimitri suggesting they just accept that they can't compete with the other dojos and give up before they get more bruises. Miguel has been very quiet despite being the only student to actually win any of his fights, and when asked expresses his concerns about Robby, who has fought particularly badly. Eli says that Tory's decision to fight for Cobra Kai must really be eating away at him, but Miguel says he needs to move past it. If he can't, then even if their dojo makes it to the finals, Robby will lose it all in the Captain's fights. Daniel takes a taxi across town and calls Amanda, for whom it is the middle of the night due to the time difference, and tells her about the letter he got from Master Serrano. Amanda thinks it's a bad idea to meet a mysterious karate master he knows nothing about in a country where he barely speaks the language, and reminds him that they agreed to let Mr. Miyagi's secrets lie. Daniel tells her that changed when he found the headband. Mr. Miyagi hated the idea of fighting for competition, and now it seems that he himself fought in the biggest tournament in the world. It would have been right after his wife and newborn son died, and they have no idea what might have been going through his mind after such a devastating loss. If Master Serrano knew Miyagi and can shed light on his actions so long ago, than Daniel feels he has to speak with him. Amanda is understanding, but asks Daniel about the other two events the team has that day. Daniel says that this was the time Serrano could meet him, and he will have enough time afterwards to get back before the next event. In any case, he is hopeful that Serrano, being a former champion, can give him some advice to help turn things around in the tournament. Amanda asks him to be careful as the cab arrives at its destination. They are in a secluded part of the city, and the cab driver asks Daniel if he's sure he has the right address, as this is not a part of town that tourists come to. Daniel is sure and asks the driver to wait for him, but as soon as he gets out the car drives off. Johnny runs into Sensei Wolf again at lunch, where the younger man mocks Johnny's careless eating habits compared to his and his students' carefully regimented diet. Johnny asks him why he seems to have such a grudge against him, and Wolf accuses him and all Americans of being coddled and spoiled compared to where he comes from, unused to the kind of sacrifices he's had to make to get to where he is. The announcer reminds the senseis that the next event is coming up within the next couple of hours, so Johnny tells an unintimidated Wolf that Miyagi-Do will show him what their team is capable of. Meanwhile, Daniel makes his way through the tight, towering streets looking for Master Serrano's residence. It is deserted and eerily quiet, and Daniel is surprised by a young boy who tries to sell him a pendant of Jesus Christ on a keychain. Daniel buys the cheap souvenir before the boy runs off, and finally finds the gate to the address on the note, finding it locked tight. Suddenly, Daniel is struck from behind with a crowbar, and knocked unconscious.

The next event is about to start as Sam makes her way out of the locker area. She calls her dad but gets no answer, and she is forced to leave a worried message. She passes one of the training rooms and sees Sensei Wolf working with his male captain, Axel, in private. Wolf is dissatisfied with Axel's performance, and begins to beat him when he doesn't sense improvement. Axel spots Sam in the doorway, who leaves to meet her team. She asks Johnny if he's seen Daniel, but Johnny doesn't know where he's gone since stepping out that morning, and is perfectly happy to have the team to himself and coach them to go after points more aggressively. The second event of the day involves each team's fighters facing their opponents one-on-one on low, narrow platforms, with the goal of knocking eachother off. How well they do will determine their placement in the elimination round that night. Johnny tells the students to go after their opponents hard and fast, and score a swift victory for maximum points. Sam points out that they will need balance to avoid falling off the platforms but Johnny is determined to claw their way back up the leader board by the fastest route. Devon is first up and charges at her opponent, but loses her footing and is knocked off within seconds. Johnny tells the team they need to get their heads in the game and do better.

Daniel wakes up in a warehouse cellar, locked in a steel dog cage. There are several other cages around him, containing vicious dogs. Two men enter to check on him and Daniel demands to be released, assuming they have him mistaken for someone else, but the men indicate that he was indeed their intended target. Daniel asks if they work for Serrano, but they ignore him and leave as he realizes that someone set a trap for him. At the Sekei Taikai, each of Miyagi-Dos have been beaten one by one, including Robby. Miguel steps up and faces a difficult fight against one of the other team captains, but is able to knock him off and finally score some points. However, they have fallen to near the bottom of the leaderboard and are in dire straits going into the elimination round. Johnny angerly orders his team to their locker room for a meeting. He reams them out for having seemingly lost all of their fight and determination, and says that while some of them will be able to move on after this, some of them will live with this failure forever. None of them argue with him as he berates them, and he asks why they can't even muster up the motivation to stand up for themselves. Sam snaps at him, saying their losses are just as much his fault as theirs. If he just listened to Daniel more, they wouldn't be so torn as a team, and she wonders if he didn't show up for the event because of Johnny's constant disrespect. She says he's unworthy of calling himself a Miyagi-Do sensei and Devon tries to defend him, but Sam points out that she has lost the worst out of any of them due to Johnny's teachings and can't even guess how she even made the team, which silences Devon's protests. Dimitri is just looking forward to finishing the tournament and going to MIT, and Eli tells him to shut up and at least try to help them win. Robby tries to rally the team and focus on their goal, but Miguel thinks he's being a hypocrite for not taking his own advice, and walks out, followed by each of his team mates. Even Robby has had enough of Johnny's posturing, and heads back to the hotel with the others.

Daniel has been shouting after the men who abducted him, but its no use. He notes that the dogs in the other cages seem starved and abused by his captors, though he has his own problems to deal with. He takes out the headband that lead him into this predicament and laments letting himself be lured into such danger. The pendant he bought earlier falls out of his pocket, and while he initially dismisses the object, he notices the keyring its attached to and the padlock on the cage.

An upset Johnny heads to dinner and runs into Kreese, who wonders why his partner has abandoned him while their team gets crushed. Johnny walks away without a word and leaves the lounge, but is found by Devon, who asks to talk. She tearfully admits that proving herself to Johnny and making the team meant so much to her that she cheated to beat Kenny, which she deeply regrets. She cannot keep up with the others and considers herself a disgrace to the team and a failure to Johnny. Johnny comforts her, saying he has plenty of things he regrets, but none of those things include the time he has put into his students, including her. He offers that him putting pressure on her led her into feeling that she needed to make the team at any cost and feels he is partially to blame, but tells her that she is more capable than she thinks she is. She is on the team now, and must focus on doing her absolute best to make it right by helping them win. He won't tell anyone what she did and will let her decide when she wants to come clean, but for now, the team needs her. Devon hugs and thanks him, saying that maybe the Miyagi-Do philosophies are not weakness after all. She leaves to warm up for the final event that evening, and Johnny decides to give Daniel a call. The call goes to voicemail, so Johnny leaves him a message apologizing for dismissing him earlier. He regrets telling him not to come back, says that while they will likely always have their differences, they are united in wanting whats best for their kids. They need Daniel, and so does Johnny, so he tells him to come back as soon as he can. The message is received by Daniel's confiscated cell phone, which has been taken by his kidnappers who sit in an adjacent room outside of the cellar. One of them goes to check up on Daniel again, but sees the cage door open and its prisoner missing. The two rush inside and find that Daniel has unraveled the wire of the keychain to pick the lock. Daniel ambushes them, and knocks the first one out cold while avoiding the other thug's crowbar. He runs to the other cage and, having picked the lock on this one as well, releases the starving dog to take revenge on its master. He makes it into the other room and jams the door behind him, but is jumped by a third man who arrives to prevent his escape. The man is proficient in karate, and attacks. Daniel fights the mysterious man and accidentally rips off part of his sleeve, revealing a Cobra Kai tattoo on his arm. He realizes the men must work for Kreese, and, now aware of who his opponent really is, uses his Miyagi-Do mastery to defeat and incapacitate the final man. He grabs his effects and warns his assailant that they aren't finished, before bolting up the stairs and out the door to freedom.

Robby goes to find Miguel at the hotel and asks him to just say what he needs to say. Miguel calls him out for blowing his chance to be Team Captain by letting himself lose all of his matches because of his distraction. Robby says the Tory situation hasn't made things easy for him, but Miguel argues that it was never going to be easy. Both boys have good reasons for wanting to be captain, and Robby may have won it back home, but he will also ensure their defeat if he can't pull himself together. Miguel tells him to either step up, or hand over the Captain's headband. That night, the final event of the day begins, which will start the eliminations from the competition. The previous rounds have determined which dojo will face which, with the top dojo against the very bottom, and working towards the middle. Miyagi-Do, at number 12, will face number 5, the Irish team Dublin Thunder. Eli tells the others that the Dublins have a reputation as all-out brawlers, always looking to start a fight even with the locals. The competitors will meet two-on-two on top of a high suspended platform over the main stage, with their objective being to knock eachother off onto the crash mats below. Once a fighter is taken out, another from their dojo must hurry to climb up and take their place before their teammate is overwhelmed. Last dojo standing wins, and the losers are eliminated from the rest of the tournament. First up is the Iron Dragons, and Axel and Zara make quick work of the bottom team, the West End Warriors. Hawk and Dimitri mention that Axel fights like a karate monster, but Sam tells them not to judge someone they don't know anything about. The night moves on, and Cobra Kai fights the Swedish team, Polerslaget. With Tory's help the Koreans win, and move on the the next round. Tory becomes a sensation among the spectators and other fighters, and Zara starts to get jealous when they chant her name. Miyagi-Do is called to prepare for their fight and Sam searches the crowd, but there is still no sign of Daniel. Johnny tells her he wishes her dad was with them too, but says he's sure Daniel is okay and he'll do his best to fill in in the meantime. He assembles the team for a pep talk, apologizing for being hard on them earlier, but says he is certain they can win this. He tells them to remember everything Daniel has taught them, and to focus on being balanced and staying on the platform. They make their battle plan, and Johnny assigns Robby and Sam to start them off strong, Robby determined to prove the captain's spot is his. They take their places on the platform and the fight begins. They start out well, but Robby catches Tory's eye, and the second his guard is down the Dublin Thunders take advantage and knock him off. Johnny sends Devon up to assist Sam, and she is able to take out Robby's opponent. Sam nearly falls, but Johnny shouts to use her superior defense against the Irish. Sam outmaneuvers them, and knocks another fighter off. The Irish female Captain, Cara, arrives on the platform, eager to put Sam in her place. Her strength proves too much for Sam, who gets kicked off the platform. Hawk climbs up and they clash with Cara and her teammate, but, recognizing the Irish Captain outmatches both of them, Devon tackles her off the platform, sacrificing herself in the process. Each team has lost three fighters, and Dimitri goes up and fights alongside Hawk. They both hold their ground well, but Dimitri lets loose a careless kick that hits both Hawk and the Irish team member he was grappling with, knocking them both off the platform. Dimitri is horrified, and the other Dubliner kicks him off while he's distracted. Miguel has to go up alone to face the final two Dublin Thunders, including their male captain. He tells Robby to watch and learn. Miguel launches into action against his two opponents, expertly using both defense and offense to handle both men at once. After an intense fight, he sends both of them flying off the platform, earning an impressive victory for Miyagi-Do. His teammates rush to the platform past the furious Dublin Thunders to congratulate him amidst the applause, but Robby is downcast by his own failure. Johnny gets a call from Rosa, who has urgent news.

Later that night, Daniel makes it back to the hotel. He finds Kreese in the lobby, who gleefully jabs at him for missing the events of the day, and Daniel pins him to the wall in fury, assuming he hired the thugs. Sam finds them and reunites with her dad, relieved that he's alright. She asks him where he was, and Daniel apologizes for not being there for them. However, not wanting to get her worried again, doesn't tell her what happened to him. She tells him they made it past the first elimination round, barely, and he promises not to abandon them again. He goes to the room to find Johnny, who's packing his suitcase in a hurry. Carmen has been rushed to the hospital, something has gone wrong with her pregnancy. He and Miguel are taking the next flight home, and they don't have time to explain to the rest of the team. Daniel tells him he'll handle it and tells him to focus on getting back, and a grateful Johnny leaves for the airport.