Thirty-four years after his defeat in the 1984 All-Valley Karate Tournament, Johnny Lawrence, now in his 50s, works as a part-time handyman and lives in an apartment in Reseda, Los Angeles, having fallen far from the wealthy lifestyle in Encino that had been enabled by his verbally abusive step-father, Sid Weinberg. He has a son, Robby Keene, with ex-girlfriend Shannon Keene, but he abandoned them both when both Robby was born and Johnny’s mother Laura died on the same day. Johnny, admittedly, has never recovered from his breakup with then high school girlfriend, Ali Mills. After losing his job, a down-and-out Johnny rescues his teenage neighbour Miguel Diaz from a gang of bullies using karate.
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Thirty-four years after his defeat in the 1984 All-Valley Karate Tournament, Johnny Lawrence, now in his 50s, works as a part-time handyman and lives in an apartment in Reseda, Los Angeles, having fallen far from the wealthy lifestyle in Encino that had been enabled by his verbally abusive step-father, Sid Weinberg. He has a son, Robby Keene, with ex-girlfriend Shannon Keene, but he abandoned them both when both Robby was born and Johnny’s mother Laura died on the same day. Johnny, admittedly, has never recovered from his breakup with then high school girlfriend, Ali Mills.

After losing his job, a down-and-out Johnny rescues his teenage neighbor Miguel Diaz from a gang of bullies using karate. Miguel, an asthmatic child raised by his Ecuadorian single mother Carmen, asks Johnny to teach him. Initially reluctant, Johnny finally agrees and decides to reopen the Cobra Kai karate dojo as a chance to recapture his past; however, this act reawakens his rivalry with Daniel LaRusso. Daniel, now the owner of a highly successful car dealership chain, is married to Amanda and has two children: Samantha and Anthony. Daniel is finally living the wealthy lifestyle he envied as a child when he lived in Reseda. However, after his friend and mentor Mr. Miyagi died, Daniel’s struggle to meaningfully connect with his children has disrupted the balance in his life. Meanwhile, his mother Lucille, his other source of support, has a complicated relationship with his wife Amanda.

Johnny’s dojo attracts a group of bullied social outcasts who find camaraderie and self-confidence under his tutelage, a marked contrast to the kind of students Tommy, Bobby, Dutch, Jimmy and Johnny were when training in the original Cobra Kai run by John Kreese. Johnny develops a bond with his first and best student, Miguel, in a manner that resembles the relationship between Daniel and Mr. Miyagi. Cobra Kai’s philosophy, however, remains mostly unchanged, though Johnny tries to infuse it with more honor than Kreese did. Thus, Miguel develops into a very different kind of student than Daniel, or even Johnny, was; he also begins dating Samantha. Johnny’s efforts to reform Cobra Kai are undermined by the unexpected reappearance of Kreese, who hopes to bring the dojo back to its originally ruthless form.

As a means of revenge against his estranged father, Robby convinces Amanda to hire him for a position at the LaRusso Auto dealership and develops a close friendship with Daniel (although Daniel is unaware of Robby’s lineage). He even studies Mr. Miyagi’s form of Karate with Daniel and becomes friendly with Samantha. She eventually joins her father’s dojo, which ultimately leads to her breaking up with Miguel. Miguel later begins dating another Cobra Kai student, Tory, who is Sam’s rival.