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.
Miyagi and company follow the magic rainbow to a mountain paradise in the Himalayas where the stone has turned a well into the Fountain of Youth.
Taki returns the shrine to her temple, but a thousand year feud between her family and the Ishida's makes them lose the shrine once again.
Mr. Miyagi and friends follow the shrine to Australia where a tribe of Aborigines believe it should be offered to the god of the volcano.
Miyagi, Daniel and Taki travel to the Soviet Union where Prof. Kirov is studying its magical powers.
Mr. Miyagi has traced the shrine down to the coast of Norway where a whale has swallowed it and is attacking illegal whaling ships.
The search for the shrine brings Miyagi and friends to San Francisco where they join a group of senior citizens in a car rally, hoping it will ultimately lead them to the shrine.
