Set in 1932, amid the rise of militarism after the establishment of the Manchukuo colony in Northeast China, the story centers on a trio of karateka. Studying under their aging master in a small dojo in the woods of central Kyushu, Choei, Taikan and Giryu face a company of kempeitai military police come to requisition their dojo for use as a military base.
Daniel moves to Los Angeles with his mother, Lucille, and soon strikes up a relationship with Ali. He quickly finds himself the target of bullying by a group of high school students, led by Ali's ex-boyfriend Johnny, who study karate at the Cobra Kai dojo under ruthless sensei, John Kreese. Fortunately, Daniel befriends Mr. Miyagi, an unassuming repairman who just happens to be a martial arts master himself. Miyagi takes Daniel under his wing, training him in a more compassionate form of karate for self-defense and later, preparing him to compete against the brutal Cobra Kai.
Mr. Miyagi decides to take Julie, a troubled teenager, under his wing after he learns that she blames herself for her parents' demise and struggles to adjust with her grandmother and fellow pupils.
Jean Claude Van Damme plays a dual role as Alex and Chad, twins separated at the death of their parents. Chad is raised by a family retainer in Paris, Alex becomes a petty crook in Hong Kong. Seeing a picture of Alex, Chad rejoins him and convinces him that his rival in Hong Kong is also the man who killed their parents. Alex is suspicious of Chad, especially when it comes to his girlfriend.
Following the death of his wife, Ip Man travels to San Francisco to ease tensions between the local kung fu masters and his star student, Bruce Lee, while searching for a better future for his son.