Via a quick flashback, we review the Kid's triumph in the championships and his mentor Mr Miyagi's triumph over rival trainer Kreese in a car-park bust-up. Now, a year later, the title's up for grabs, but Daniel (Macchio) doesn't want to defend it - it's not important any more. Kreese wants to force him to fight Mike Barnes (Kanan), who has been trained to fight dirty; and a delightful villain, ruthless millionaire Silver (a stunning debut from Griffith) vows to help him humiliate the Kid and discredit the Master and the Way. Daniel accepts the challenge, but Mr Miyagi won't train him, and suddenly he's in deep trouble. After suffering endless abuse, Daniel wins with just a few well placed whacks: those expecting standard wish-fulfilment fantasy will be disappointed that (in tune with the philosophy, of course) he didn't give the punk a pasting.