Plot

A fight night erupts in the Valley as Johnny, Daniel, Chozen and their students summon all their skills and strength to expose Terry and take him down.

While Johnny, Chozen, and Barnes go after Silver, the Miyagi-Do kids try to download the incriminating video against Silver. Raymond comes to the rescue, and in prison Kreese is mortally stabbed after the prisoner therapist discusses his future with him.—Gislef

With the help of a vengeful Mike Barnes, Chozen and Johnny decide to take on Silver once and for all, while the Eagle Fang/Miyagi-do students come up with their own plan to expose Silver. However, Silver's fate may ultimately rest with Daniel. Meanwhile in prison, Kreese faces an unprecedented test.—No One

In prison, Kreese tearfully tells his psychiatrist that he has completely given up. His best student, whom he thought of as a son, has disowned him, and he will spend the rest of his days in prison. The psychiatrist tries to encourage him, and tells him to make the rest of his time something he can be proud of. In the commissary, a fight breaks out between Gabriel and one of the other inmates. Kreese steps between them and tells Gabriel to stand down, but Gabriel, apparently sick of taking Kreese's orders, stabs him several times with a shiv. Kreese lies motionless on the floor as the guards call for help.

In the present, the party limo comes screeching to a halt in the middle of the woods. Daniel is pulled out of the car and thrown to the ground, and sees the driver; Mike Barnes. He is wild-eyed as he seizes Daniel and accuses him of ruining his life. Chozen tries to tell Mike that it wasn't Daniel's fault, and Johnny throws a can of beer that hits Daniel instead. Johnny attacks Barnes, who holds him off as Daniel and Chozen break them up, and introduce Johnny to Mike. Daniel tries to calm him down, but Mike is half mad, saying that all of his securities were put into his store. Without it, he is destitute. Daniel tells him that Terry Silver is the one responsible, he apologizes for ever letting Mike get caught in Silver's wrath, and promises to do whatever he can to help him get his life back. Mike has a simple solution: find Silver tonight and take his revenge. Daniel tries to reason with him, but Mike is tired of Silver ruining their lives and never facing consequences. He is ready to march right into his house and attack him. Johnny and Chozen enthusiastically agree, they both want payback for Silver's crimes against all of them, and Chozen offers up Terry's address. They get ready to head over, and Daniel desperately tries to make Johnny see reason. They are all drunk, and Mike is clearly under the influence of something much worse. They have almost no chance in a fight in their condition. Johnny states that the stupidity of the plan is exactly why Silver won't see it coming, and tells Daniel to get ready to finish this. He refuses to ride off on their suicide mission, so Mike drives away leaving Daniel stranded on the side of the road.

That night, Miguel, Robby, Hawk, and Demetri gather at the apartments as per Sam's texts. Demetri has been asked to bring his computer equipment, but none of them know what is going on. They are surprised to see Sam arrive with Tory, who's bandaged up her broken hand the best she can. Their plan is to find the security footage of Silver beating up Stingray in the old Cobra Kai dojo. The old building was cleared out, but Demetri says that the server its stored on would have been moved too. Tory says that the server is in Silver's office at the new flagship dojo. If they can find it and post it online, Silver will be finished. Sam tells them to contact the rest of the Miyagi-Fangs to meet them there. At Terry's house, Silver tells Kim that he plans to send a strong message to Daniel and Johnny that he is not to be messed with. Just then, Kim sees the Party Limo Posse drive straight through Silver's front gate. Johnny, Chozen, and Mike barge into the house and confront Silver and Kim. Silver is unsurprised to see his former associate in such disarray, and Mike tells him he will pay for burning his life to ashes. Terry calls in Sensei Min-Jun, and Mike easily takes him down. However, he is jumped from behind by another sensei and knocked unconscious, leaving Johnny and Chozen to face the rest of The Fist as they emerge. Terry tells them that since they are trespassing, he can get away with doing whatever he wants to them, and the two prepare to fight.

Amanda and Carmen relax at the LaRusso house after their night out with the men. Daniel calls, and hastily explains, over his phone cutting out, what's happened with Barnes, Johnny, and Chozen, and says he needs a pickup. He doesn't even know where he is, but is able to send her a ping from his phone. Just then, a car pulls up in the driveway. Amanda looks, and tells Daniel its Cobra Kai. Daniel tries to tell her to leave right away and get to safety, but his phone completely loses service, and leaves him nearly frantic with worry. Outside the Cobra Kai dojo, the rest of the Miyagi-Dos and Eagle Fangs have arrived. They discuss how to break in, and Robby is ready to use his old skills. Tory however has a keycard, and they are able to walk right in and up to Silver's office. Robby disconnects the security cameras, and the Binary Brothers get to work on the computer. However, one last hidden camera watches them from the wall. At Silver's house, Chozen and Johnny are locked in battle with the Fist. Kim sees the teenagers on the dojo office camera and alerts Silver, who sends her to deal with that situation as he retreats further into his house. Johnny holds off the Fist senseis and tells Chozen to follow Terry. Meanwhile, Daniel runs for several miles until he finds a man pulled over, and tells him he needs a ride back to the city for an emergency. Assuming him delirious from drinking, the man calls out several other passengers to deal with him. With no other options, Daniel prepares to fight them, but out of nowhere, the Cobra Kai Dodge Challenger pulls up with Stingray behind the wheel, and Amanda and Carmen in the back seat. They tell him the kids are in danger and he jumps in the car before the men in the truck can make good on their threats.

Demetri hacks into the Cobra Kai server and finds the date and time that Stingray was assaulted. However, the file has been erased. Thinking fast, Tory says there may be another day with footage they can use. They find it and work on copying it when they hear a commotion downstairs. Sam, Miguel, Robby, and Tory run down to find the Miyagi-Fangs exit blocked by dozens of Cobra Kai students, including Kenny, Devon, and Kyler. Sam doesn't understand how the Cobras knew about their operation, and Mitch reveals that, in resentment for their disrespect of him and unhappy with their own dojo, he sold them out to regain his spot in Cobra Kai. Kyler tells them the traitor count is even, but Tory tries to get through to the others about the dangers of training under Silver. Kenny is still hateful of Robby and the others. When Miguel gets in his way he throws the first punch, and an all-out brawl ignites in the dojo as the students charge.

Stingray races back towards the dojo with Daniel, Amanda, and Carmen, who desperately try to call their kids. Stingray tells Daniel that he didn't think Silver would hurt anyone else once he got what he wanted. However, he received the Cobra Kai group text with the plan to ambush the Miyagi-Fangs, and went to the LaRusso house to warn him. None of the kids or Johnny answer up their phones, and Ray picks up the pace.

Terry has retreated to his weapons room, and observes the battle in both his dojo and living room. Chozen finds him, and Silver reminds him of his promise should Terry cross his "line". They square off, and Chozen is initially unprepared for Terry's strength. Chozen uses the pressure point technique against him, but Silver recovers fast enough to change tactics. He draws his prized sword, and Chozen draws his sais and says he is not afraid of killing. Terry responds that he does not fear dying. Meanwhile, Johnny stands alone against the six members of the Fist. Terry and Chozen move outside and begin to fight. They are evenly matched, but Terry draws first blood as he cuts Chozen's arm. As Johnny starts to get overwhelmed inside, Chozen gets another cut across his leg from Silver's razor sharp sword. Silver knocks Chozen back and prepares to land the final blow, but Chozen counters him and uses his sai to pull Silver's leg out from under him and drop his sword. Silver asks Chozen to kill him on the field of battle like a warrior, but Chozen hesitates. He gets distracted when he hears Johnny cry out, and Silver takes the opportunity to grab his sword and slashes Chozen across the back, leaving him bleeding out in the pool. At Cobra Kai, the carnage continues. Tory finds Devon and apologizes for lying to her, but they are separated by the sea of fighters. Upstairs, Demetri is still working on downloading the file with Hawk when Kyler and two others come in. Kyler insults them, but Eli points out to his former bully that almost everyone he's ever bullied has beaten him in a fight. In the dojo, Kenny tracks down Robby and attacks him. Robby tries again to reason with him, but his former protege is consumed by rage. More Cobras surround Robby as Kenny uses the Silver Bullet on him.

Johnny is beaten down by the Fist and brought to heel as an exhausted Silver returns. Silver implies that he killed Chozen, and Johnny is furious, but unable to continue fighting. Silver tells him that for all Kreese's talk about Johnny being his best student, he wasn't very smart to attack him in his own home. He says at least Johnny won't have to worry about messing up with another kid, and leaves to deal with the Miyagi-Fang students at his dojo. Before he leaves, Terry gives the order for the Fist to end Johnny. At Cobra Kai, Robby struggles to get his breath back while Kenny and the others mercilessly pummel him. Miguel jumps in to defend him while upstairs, the Binary Brothers tag team fighting off Kyler and his friends. Demetri finally gets the chance to knock him out, and Eli finishes getting the security clip onto a portable tablet so they can upload it online for everyone to see. Kim Da Eun arrives and finds Tory, intent on teaching her another lesson for her treachery. Kyler knocks the tablet out of Hawk's hand when they get downstairs, but Anthony is able to pick it up, making him the Cobras' new target. Miguel calls for the Miyagi-Fangs to "protect the egg", and they form up around the boy to hold off the Cobras. Tory is pinned to the floor as Kim crushes her hand under her foot. Samantha hears Tory cry out, and tackles Kim off of her, and the two rivals fight together against the evil sensei. However, they are no match for the karate master, and Samantha is distracted when she sees her brother in danger. Devon steps in, having decided to stand with her friend, and tells Kim she will find her own path to becoming a champion. She tells Sam to defend Anthony while she and Tory hold off Kim. Daniel and the others arrive outside, but are barred from entering by more Cobra Kais. Daniel is hesitant to fight kids, but Stingray is not. In a surprising display of speed and skill, Ray easily takes out the offending students.

Inside, the Miyagi-Fangs are losing ground. One by one they are taken out until they are back-to-back around Anthony. Meanwhile, the video finishes uploading, and Anthony has just enough time to set it to play on the dojo TV before the Cobras start pulling the Miyagi-Fangs apart. Daniel and the others make it inside and see the chaos, and Amanda calls the police while Daniel runs in to try and stop the fight. Just then, the video starts to play, and the Cobra Kais pause to see a clip showing Tory confronting Silver about paying off the All-Valley referee, which he readily admits to. Terry enters, and mocks Daniel for his plan. Tory tells him that it was their plan, and it changes everything. Silver tries to rally his students, but they do not respond to his commands, conflicted by the revelation that their "victories" were hollow. Silver insists that in life, the rules mean nothing. All that matters is being willing to do whatever it takes to win. He tells them the enemy senseis broke into his home and attacked him, and menacingly tells Daniel that he's the only one left. Meanwhile, the Fist begin to beat Johnny to death. As they strike him, the scan of his unborn child falls out of his pocket. Determined to not leave another kid fatherless, Johnny gets a burst of strength, and one by one takes out the six other men. Eventually, his energy wanes, but before the last two senseis can kill him, Mike recovers from his injury and knocks them out. The two of them go to find Chozen.

At the dojo, Silver tells Daniel that all of his efforts to stop him resulted in nothing but pain for him and his family, and reminds him of his humiliating defeat the last time they faced eachother. He confidently challenges Daniel in front of both their students. Supported by his wife, his kids, and his pupils, Daniel accepts. Silver and Daniel face off, and Silver tells him that he will end Miyagi-Do once and for all. Daniel responds that no matter what, Miyagi-Do's strong roots will survive. Terry attacks, but Daniel blocks and counters. Balanced and focused, he waits for Silver to make his next move. He remembers Terry's "Quicksilver Method" he used to manipulate him as a teenager and uses his own principles against him, hitting his leg and pinning him down. Silver tries to hit Daniel with the Silver Bullet, but the Miyagi-Do master intercepts it and once again drops Terry with a counter attack. Silver recovers, and unleashes a flurry of blows. Daniel blocks every one, and double punches Terry in the chest. Up against a wall, Silver grabs Tory's trophy and attempts to strike his opponent. Using the very technique Terry himself belittled so long ago, Daniel executes a perfect Crane Kick into Silver's face, knocking the Cobra Kai sensei out. Thoroughly disenchanted of their dojo and their sensei, every one of Silver's students throws their Cobra Kai apparel at his feet and walks out.

Later that night, police and medical teams swarm the flagship dojo, taking statements and treating injuries. Outside, Ray recants his testimony to the detective that worked his case, saying he was under duress. The Ginger Twins, who were separated when half of the Cobra Kai students joined Miyagi-Do, are reunited, and Kyler tries to claim he saved everyone from the evil dojo, to unconvinced officers. Robby finds Kenny, who isn't ready to talk yet and leaves. However, Tory assures him he will come around eventually. They both apologize for the secrets and assumptions they made before, and kiss as they get back together. Miguel and Sam check in with eachother, and Sam shows him the octopus necklace she found. Miguel admits that he meant to give it to her before they broke up, but he wanted to respect her wishes, and so didn't say anything. Samantha is moved by this, and Miguel confesses that he loves her. She says she loves him too, and they also share a heartfelt kiss. The party limo pulls up, and Johnny gets out to Carmen's relief. After what Silver said, she thought he was dead, but Johnny says that he could not bare the thought of missing out on their family's life together. Mike helps Chozen out of the car, alive, but wounded and still very drunk. Daniel helps him to an ambulance, and sees that Mike has taken a Rembrandt painting from Silver's house as compensation for his furniture store. They all see as Silver is led out of the dojo in handcuffs. With his decades-long hold over Daniel finally broken, LaRusso watches with relief as Silver is placed into a police car. Johnny congratulates him on their mutual victories, and the two friends embrace. When they mention Kreese, the detective asks them if they have heard what happened.

Earlier, Kreese, apparently dead from his stab wounds, is wheeled into the doctor's office. While the doctor is inspecting him, he finds no wounds, and the "blood" is actually melted jello. Kreese springs up and knocks out the officers, and laughs as the doctor begs for mercy. He takes the man's outfit, he goes right past the pursuing guards. Using the psychiatrist's keycard that he swiped during his last session, Kreese walks out of the prison a free man.