After Alex Grady (Eric Roberts), a dedicated automobile plant welder, shares a touching moment with his five-year-old son Walter (Edan Gross) by teaching him to ride a bike, he is struck by an unexpected opportunity. He receives a letter inviting him to try out for the U.S. Olympic Tae Kwon Do team, set to compete in the 1988 Summer Olympics in South Korea. Sharing the news with his mother, Mrs. Grady (Louise Fletcher), brings worry to her face; she fears that Alex’s old shoulder injury could lead to serious consequences, potentially paralyzing him during the competition.

In another part of town, Tommy Lee (Phillip Rhee) is in the midst of instructing a Tae Kwon Do class for children when he receives his own invitation. The atmosphere becomes tense at the tryouts when Travis Brickley (Chris Penn), sporting a cowboy hat, bluntly refuses to lend his adhesive tape to Alex. In a moment of camaraderie, Tommy tosses Alex a roll as Frank Couzo (James Earl Jones), the head coach, looks on. The competition heats up, and as Travis advises competitor Virgil Keller ([John Dye]), cautioning him to protect his face, another athlete Sonny Grasso ([David Agresta]) quips that Travis’ attitude stems from his mother’s failure to breastfeed him. The tension escalates when Travis loses to the referee’s call during a match, prompting coach Frank to observe that regardless of his attitude, Travis is indeed “a fighter.”

Following the matches, coach Couzo presents Mr. Jennings (John P. Ryan), the Olympic committee chairman, with his selections for the team. Despite Jennings expressing concern over Alex’s shoulder, he announces the names of the athletes who made the cut: Alex, Sonny, Virgil, Tommy, and Travis. The team is ushered into a room where they are informed of the rules—specifically the importance of punctuality and teamwork. They learn they have three months to prepare for their first competition against South Korea, and are introduced to their living accommodations based on teammate pairings. Here, Tommy discovers he is sharing a room with Alex, who reveals he is a widower. Meanwhile, Sonny and his assistant coach, Don Peterson (Tom Everett), bond over a fascinating collection of athlete statistics and opera CDs.

As training commences, the athletes are subjected to a rigorous schedule. When the tension in the team begins to rise, Travis leads them out for a night at a bar, which unfortunately culminates in a brawl. Surprisingly, they find coach Couzo already present, enjoying the chaos, and afterwards, he orders everyone back to their accommodations. The following day, the team receives an unexpected addition: Catherine Wade (Sally Kirkland), a sports psychologist. She explains their need to adapt to Korean training practices that prioritize meditation and focus, essential elements for their success.

The relentless training incorporates yoga and meditation, and they face the daunting task of breaking cement blocks. When they hesitantly look for a volunteer to demonstrate, Catherine surprises everyone by effortlessly shattering the blocks. However, Travis continues to express his disdainful remarks towards both Tommy and Catherine, displaying an underlying friction within the team. Tension escalates when Travis provocatively questions Tommy’s bravery, sparking laughter among their teammates.

Later, during training, Tommy grapples with the shadow of his nightmare—his brother David’s tragic death in a match against Dae Han Park, Korea’s leading competitor. As the days draw closer to their trip to Korea, a tragedy strikes Alex’s family when his son Walter is critically injured in an accident. In a heart-wrenching decision, he informs Couzo of his need to return home; however, Couzo insists that leaving would mean forfeiting his spot on the team. After a narrow brush with tragedy, Walter awakens from his coma, and Alex, driven by his fatherly instincts, returns to training only to find his place in jeopardy.

As training progresses, an intense sparring match between Tommy and Travis showcases their volatile relationship. Tommy’s flashback to his brother’s demise burdens him, causing him to flee from his fears. Meanwhile, Catherine confronts Couzo, revealing her belief that his singular focus on winning might compromise his judgment regarding the athletes. In a moment of vulnerability, Couzo opens up about his past mistakes with David, promising himself to protect his current team from similar heartbreak.

When Tommy gets a moment of clarity, he smiles at a young boy who experiences a simple act of kindness—another reminder of the humanity within the martial chaos. Upon arriving in Seoul, Couzo galvanizes the team, promising that giving their all leads to the true spirit of competition—“the best of the best.” Alex’s heart swells with pride upon seeing his family in the stands as the contest commences. Unfortunately, Sonny and Virgil falter under pressure, racking up a risky deficit against the Koreans.

As the matches unfold, the tension grows; Travis endures a brutal fight, sustaining a serious injury but ultimately tying the score. It becomes clear that only Alex and Tommy can salvage the day for their country as they prepare to face their formidable opponents.

In a dramatic showdown, Alex sustains a dislocated shoulder during his match, yet his indomitable spirit shines through as he musters the strength to fight on. With staggering odds, he returns to the ring, winning a crucial point for the U.S. As the final matches draw near, Tommy confronts Dae Han in a climactic bout where painful memories resurface, creating an internal battle that threatens to overwhelm him.

Just as triumph seems within reach, time runs out, and Dae Han is granted victory through a narrow margin. However, the heart of the narrative lies in the profound respect that emerges between Tommy and Dae Han, culminating in an emotionally charged moment where Dae Han honors Tommy by presenting him with his gold medal, symbolizing a shared bond that transcends rivalry. The applause of the crowd underscores a moment of collective dignity, respect, and honor for all competitors involved.