在这部龙威小子3动作/家庭/运动片中,在宫城先生的指导下，丹尼尔在空手道锦标赛上打败了克瑞斯的学生，获得冠军。克瑞斯恼羞成怒，痛打学生，结果众叛亲离，不得不关闭道场宣布破产。克瑞斯的战友泰瑞得知此事后，立誓要为克瑞斯报仇雪恨。泰瑞在幕后操纵，逼迫丹尼尔参加锦标赛，并雇来空手道高手，要在锦标赛上痛打丹尼尔。丹尼尔向宫城先生求助，但宫城先生却再次重申他对空手道的信念——武术是用来保卫生命与荣誉，而非用来争夺奖杯的。求助无门的丹尼尔另求名师，却踏入了泰瑞为他设计的死亡陷阱。在擂台上被痛打的丹尼尔，能否重拾信念，找回空手道的真谛……
John Kreese, his life in tatters after his karate school was defeated by Daniel and Miyagi, visits Terry Silver, a Vietnam War comrade. Terry is a ruthless businessman and martial arts expert, and he vows to help Kreese gain revenge on Daniel and Miyagi, and reestablish Cobra Kai. Upon returning from Okinawa, Daniel and Miyagi discover that their apartment building has been demolished, which brings Miyagi out of work. Going against Miyagi's wishes, Daniel uses his college funds to realize Miyagi's dream of opening a bonsai tree shop, and becomes a partner in the bonsai business.
