Daniel LaRusso, portrayed by Ralph Macchio, is a young teenager who faces the challenge of relocating from the familiar landscapes of New Jersey to the sunny beaches of Los Angeles after his mother, Lucille (played by Randee Heller), secures a new job. Despite the sunny outlook the West Coast promises, Daniel feels a profound sense of loss, as he must leave behind his friends and embrace an unknown future. Yet, driven by a desire to please his mother, he vows to make the best of his new surroundings.

Upon settling into their new apartment complex, Daniel quickly finds camaraderie with Freddy Fernandez (Israel Juarbe), but the peace is short-lived. An invitation to a beach party opens a new chapter for him, where he lays eyes on the enchanting Ali Mills (Elisabeth Shue). However, the festivities take a dark turn when Johnny Lawrence (William Zabka), a local bully, rides in with his crew on motorcycles, creating a scene of chaos. Johnny’s jealousy ignites a confrontation with Ali, revealing their tumultuous past. In a moment of bravery, Daniel attempts to defend her, only to be soundly defeated by Johnny’s martial arts skills, resulting in a humiliating black eye.

As he navigates the treacherous waters of high school, Daniel faces further embarrassment, such as during soccer tryouts when he stands up to Bobby, another one of Johnny’s friends, resulting in expulsion. Despite having received some martial arts training from a YMCA self-defense class, Daniel realizes he requires more thorough training to stand up to his tormentors. His encounter with his neighbor, Mr. Miyagi—played by Pat Morita—when the faucet in his apartment breaks, opens a pathway to a transformative friendship. Miyagi, who initially appears grumpy while trying to catch a fly with chopsticks, reassures Daniel with a promise of assistance.

In a bid to gain acceptance and respect, Daniel looks into joining the Cobra Kai dojo, run by the ruthless sensei John Kreese (Martin Kove). However, upon finding his enemies among the students, he hesitates and ultimately leaves the dojo in fear. His fear escalates when Johnny and his gang target him for harassment, including a terrifying incident where they sideswipe him with their bikes, sending him tumbling down a hill. In a moment of frustration, Daniel considers abandoning California altogether but is reminded of the importance of perseverance through a heartfelt conversation with Miyagi, who overhears their exchange.

The following day, Daniel is pleasantly surprised to discover that his bike is miraculously repaired by Miyagi. As the two bond over activities such as bonsai tree pruning, Daniel starts to find solace in the mentorship of his wise neighbor. Their relationship deepens when Miyagi reveals stories from his past, sharing how he learned to prune bonsai trees in Okinawa, which continues to inspire Daniel.

As Halloween nears, Daniel goes on a date with Ali, and despite the awkward beginnings, they share a memorable moment at the school dance. However, the tension rises when a cruel prank leaves Daniel drenched, leading to a physical confrontation with Johnny. Just when it seems Daniel’s fate is sealed, Miyagi intervenes, showcasing his own karate skills, and vows to teach Daniel the art of self-defense with the aim of empowering him.

At the Cobra Kai dojo, tensions reach a boiling point when Miyagi confronts Kreese, demanding respect for Daniel. In response, Kreese challenges them to a karate tournament, laying the groundwork for an eventual showdown. Under Miyagi’s guidance, Daniel engages in a rigorous training regimen that includes seemingly mundane chores that, unbeknownst to him, are fine-tuning his karate skills.

As the tournament day approaches, Daniel evolves from a bullied teen into a formidable contender. He trains relentlessly, learns defensive techniques, and becomes aware of the psychological aspects of martial arts, gaining confidence along the way. The day of reckoning at the All-Valley Karate Tournament arrives, where Daniel has both his mother and Ali cheering him on. Despite facing formidable opposition, including Johnny and other Cobra Kai students, Daniel emerges victorious following a dramatic final showdown where he utilizes the “crane technique” to secure his win and earn the championship trophy.

In the end, as Daniel is hoisted aloft by his peers and Johnny begrudgingly acknowledges his victory, both he and Miyagi share an unforgettable moment of pride. Daniel has not just triumphed in the tournament but has discovered strength within himself, proving that with determination, self-belief, and the right guidance, one can overcome even the toughest challenges in life.