Plot

The tournament comes to a shocking end, with the aftermath leaving its participants reeling - and two champions facing uncertain futures.

The all valley tournament comes to its conclusion and the individual, and grand, champions are revealed. But not before there are some twists and turns along the way. The season ends with a shocking twist and an old friend makes a late appearance.—Iantjambo

Ray wakes up at a hospital, severely injured. The nurse tells her assistant to call in the detective who brought him in.

At the tournament, Miguel's injury is luckily only a pulled muscle. The officials have given him thirty minutes to recover, or else he forfeits the fight to Eli. Johnny tells Miguel to rest so he can continue competing. Meanwhile, Demetri is matching against Robby. Demetri puts up an impressive fight, but is still overpowered by Robby, who wins. Despite this, Demetri has made his team proud. In the locker room, Kenny is tending to his bloody nose when Anthony comes to apologizes for how he treated Kenny. Kenny however, now full of anger and hate, decides to make Anthony know how it feels to be bullied, and pummels him to the ground until Robby stops him. He is surprised to see Anthony was Kenny's bully, and Kenny promises to make LaRusso pay at school from here on out. Robby tells Kenny this isn't how he trained him, but Kenny reiterates Cobra Kai's motto: No Mercy. Robby tries to help Anthony, who rejects him and runs off. Tory and Sam beat their respective opponents to make it to the Final for the girls. Johnny runs into Kreese in the hall. Kreese tells Johnny he had nothing to do with what Terry did to him back at the old dojo, and claims that he always cared about Johnny, and now Robby. Johnny warns him that this time, Cobra Kai will be done for good. He gives Miguel topical rub for his back and tells him to get back out there, but Miguel is not so sure he can do it. Johnny assures him he can win, but Miguel sees that Johnny doesn't just want him to win, he wants to show up Daniel and prove his way is the best. Johnny reminds Miguel what else is at stake, and pressures Miguel to continue. Miguel reluctantly agrees, but as the final minute of the time limit approaches, Miguel does not return to the mat, making Eli the winner by default. Johnny tries to find Miguel, but he has disappeared from the infirmary. As Sam prepares for the Finals, Miguel finds her and tells her he couldn't continue because he wasn't fighting for himself anymore. Samantha understands, since she feels pressure from her dad to win. Miguel points out that Johnny isn't his dad. He wishes Sam good luck, assures her he is always rooting for her. They share a kiss before Samantha is called back to the ring, and Miguel looks after her with sadness.

The Final match for the Boys Championship title is set: Eli vs Robby. Kreese and Silver tell Robby to show Daniel and Johnny that he is strong enough to win on his own, and Daniel reminds Eli not to fight for revenge, but to keep balance and focus. The fight begins, and Robby easily scores the first point. Eli tells Daniel that since Robby trained in Miyagi-Do far longer then him, he knows all his moves. Daniel reluctantly tells Eli to use his superior Cobra Kai training and put Robby back on defense. Eli uses Johnny and Kreese's training against Robby, and manages to score a point of his own. The battle rages on the mat, both boys coming close to scoring. The timer runs out, and with the score tied at 1-1, the match will now be decided, for the first time since Daniel fought Mike Barnes in 1985, by Sudden Death. Eli and Robby gain a new respect for eachother, and each bow to their opponent. Silver is angry Robby hasn't won yet, and Robby talks back to him. Kreese tells Robby to use his anger and finish the fight. Daniel encourages Eli to use all his training and give everything he's got for the final point. Robby and Eli explode into the final round. Robby gets distracted seeing Kenny in the crowd and almost loses the point, but recovers and the battle continues. Eli and Robby give it their all, and eventually, Eli scores the final point. Eli becomes the All-Valley Boys Champion. The Miyagi-Dos are ecstatic, but the tournament isn't over yet. Now the overall points are almost tied, everything will be decided by the Girls Championship fight. Robby leaves to clear his head. Amanda finds Tory in the hall, and tells her she heard that Tory has been keeping up with her therapy appointments. Tory says that the doctor found a volunteer to help with her mom, and thanks Amanda. Amanda hopes that no matter what, this match will be the end of the rivalry between Sam and Tory, and asks Tory to make a fair fight.

Before the girls title match, Daniel asks Johnny to help him sensei Samantha for her fight. He says that even though he and Johnny may be set in their ways, their kids have the right to learn both and decide their own style. He cared so much about honoring Mr. Miyagi that he forgot what he told him when he was a kid; "Just like bonsai choose own way grow because root strong, you choose own way do karate, same reason." He was scared to let Sam choose her own way, but sees that Johnny's way can also be the right way. He apologizes for not seeing that sooner, and Johnny apologizes for letting his jealousy of Miguel growing closer with Daniel get the better of him. They decide to come together to beat Cobra Kai once and for all. Johnny and Daniel prepare to send Sam into the fight, and Daniel tells Sam to use whichever way she thinks is best, defense, or offense. Sam hugs Daniel, and he tells her to take Tory down. The final match to determine the fate of the Valley kicks off. Samantha is able to use the Flying Tornado kick Johnny taught her to score the first point. Her unexpected style throws Tory off, but she gets back in and scores the next two points. Sam asks Daniel and Johnny what style to use, and they tell her to use her own style, to use her instincts and mix the techniques together to form a new one. Sam goes back in and hits Tory, but the referee doesn't call the point, claiming it was out of bounds. Nevertheless, Sam is able to land another hit, tieing up the score at 2-2. Sam continues to mix up the styles, keeping Tory confused. They skirmish and Tory accidentally elbows Sam in her eye, getting her a warning for illegal contact. Tory is horrified. Silver wants Tory to blind Sam's other eye, saying the Ref will not end the match on a technicality. Tory insists it was an accident and doesn't want to fight dirty to win. Kreese, worried the same thing will happen to Tory that happened to Johnny all those years ago, overrules Silver and tells her to fight how she wants to fight. Tory, encouraged, goes back to the mat and the last round sees Tory push through, and eventually score the final point. She checks to make sure Sam is ok, surprising her opponent, but her teammates flood the stage. Tory becomes the All-Valley Girls Champion, and with Tory's victory, Cobra Kai wins the All-Valley Under 18 Karate Tournament. Daniel and Johnny have lost. Terry Silver gets on the mic to announce that Cobra Kai will soon be opening locations all over the Valley, so every young person can learn The Way of the Fist. Daniel and Johnny try their best to comfort Sam, but she is devastated that her loss means the end of Miyagi-Do and Eagle Fang. Daniel assures her that it's not her fault. Carmen finds Johnny afterwards to tell him that one of the parents saw Miguel leave before the Final, she and Rosa are going home to find him. Tory is proud of her victory and is genuinely happy as she celebrates with her fellow Cobras. She goes back inside for something and overhears Silver paying off the referee for calling matches in Cobra Kai's favor, including Sam's "out of bounds" point against Tory in the Final. Tory is devastated.

Johnny goes to the Cobra Kai dojo on his way home and finds it empty. Robby enters, having followed Johnny, and tells him that Cobra Kai has moved locations. Johnny compliments Robby on his match, and tells him not the let the loss eat him up. Robby admits that he's not upset because of the fight, and confides in him about Kenny. He tells Johnny all he wanted was to give Kenny the kind of mentor he wishes he'd had as a kid. But now Kenny has turned out as twisted and messed up as Robby himself, and his hate for Johnny and Miguel has only fed the cycle. Johnny tells him not to blame himself, saying it's his fault. But Robby says he's tired of blaming his dad, and father and son tearfully embrace for the first time. Johnny assures Robby it will be ok.

At Terry Silver's house, he and Kreese toast to their triumph. Terry asks Kreese why he backed off Tory in the Final, and Kreese said it was only a moment of sympathy. However, Silver reveals that he knows what Kreese's weakness is. Johnny Lawrence. This entire thing has not been about bringing Cobra Kai back to its former glory, it's been about Johnny and his son. And Terry fell for it because as it turns out, Kreese is Terry's weakness. A weakness he intends to get rid of. The Police suddenly arrive to arrest Kreese, and we see that Silver made a deal with Ray. Ray told the Police that it was Kreese, not Silver, who beat him up, and in return, Silver promised to make him a Cobra Kai. Silver tells Kreese that he will find some old friends to help run Cobra Kai while he is away, and promises to take good care of Johnny. He continues celebrating as Kreese is taken away.

Johnny comes home and overhears arguing from the Diaz apartment. He investigates and finds Carmen and Rosa, who show him a note left on the table. Miguel has run away to Mexico to try and find his father. He tells them he will be back, but to move forward he needs to know where he comes from. Carmen is worried sick. Johnny knows that Miguel's father was involved in illegal activities, but is sure he wouldn't hurt his own kid. Carmen reveals that he ex-husband doesn't know about Miguel, since she left while she was pregnant. Johnny vows to find him and keep him safe.

Daniel is at Mr. Miyagi's grave. He says that even after he did everything he thought was right, they still lost, and now as per their deal, he is supposed to step down and stop teaching. But Daniel has decided not to honor a deal made with honorless men, saying there is too much at stake to give up. He turns, and we see Chozen Toguchi. Daniel asks him to help him continue the fight against Cobra Kai. Chozen agrees, and they both bow in respect to Miyagi's tombstone.