Daniel and his mentor Mr. Miyagi travel the world with their Okinawan friend Taki Tamurai in search of an ancient Japanese talisman stolen from an old fishing village.
Daniel befriends a young boy and pases on Miyagi's teaching in order to help him restore his position as Chief of the tribe.
Miyagi, Daniel, and Taki travel to Hong Kong and help the village fight off the Dragon and his evil henchmen.
The search for the shrine brings Daniel back to his old neighborhood and his first girlfriend.
Miyagi, Daniel, and Taki go to Paris, where they follow a man named Mr. Whiskers, who is trying to buy the shrine. When they lose the shrine, Daniel goes to a fortune teller for help.
While in London, United Kingdom, the trio get hired on a movie set about King Arthur, where Miyagi finds the power of the shrine has been drained into a prop sword, which is used by the film's leading man who then cannot separate reality from fantasy and thinks Taki is his actual bride, and Daniel is threatening him.
After a padre in Mexico hides the shrine in a Mayan temple, it's up to Mr. Miyagi to keep it out of the hands of Madero, and evil bandit.
