There are now three rival Dojos in the Valley with three different philosophies. Miyagi-Do’s is one of calm, Eagle Fang will finish a fight but never start one, and Cobra Kai is all about anger and starting trouble. All is right with the world until disaster strikes. The council has cancelled the All Valley under 18 tournament as Karate is deemed to be the problem with society.
All three sensei need this to happen for various reasons. For Daniel (Ralph Macchio) it is a matter of pride and tradition. Johnny (William Zabka) needs it because Miguel (Xolo Maridueña) needs it. Kreese (Martin Kove) needs it because for him it proves he is the most powerful and stamp his control over the misguided youth. Johnny doesn’t know what to do but is convinced by Carman (Vanessa Rubio) that he needs to fight for it.
The three sensei attend council meeting to debate the cancellation and the event becomes a farce. They all approach it with the same style as their dojos. Daniel is methodical and has planned everything he his food to say. Johnny relies on his instincts and speaks (not very effectively) from the heart. Kreese strikes first and has a manipulative response for everything. Fortunately for them, Miguel and Sam are there and their impassioned speech about how Karate has improved their lives saves the day.
Things are finally looking up for Johnny. Miguel is back on his feet, he’s set up a new dojo, the All-Valley is back on, and he is hooking up with Carman again. But he B plot to this episode is all about his son Robbie (Tanner Buchanan). His time is youth detention is up. Both Johnny and Daniel are there to collect him but he feels betrayed and let down by them. This feeling of betrayal is compounded when he walks in on Miguel and Sam (Mary Mouser) flirt-fighting at Miyagi-Do. All of this is pushing him to the dark side of Karate as be first bonds with Tory (Peyton List) and then offers himself up to the teachings of Kreese.
Kreese is now set up as the devil in this story. He tempts the innocent into his circle of influence and them corrupts them. Robbie is just looking for someone to listen to him and Kreese has take his opportunity. He only wants Robbie for the emotional impact it will have on both Johnny and Daniel. Kreese needs to have power over one of them to give him control of the Karate youths in the valley. Miyagi-Do are the good, Cobra Kai are the bad, and Eagle Fang are the badass.
The stage is set for loyalties to be tested and battle for Robbie soul.