Daniel befriends a young boy, and passes on Miyagi's teachings in order to help restore the boy's position as Chief of his tribe.
Miyagi, Daniel and Taki travel to Hong Kong and help the village fight of the Dragon and his evil henchmen.
The search for the shrine brings Daniel back to his old neighborhood and his first girlfriend.
The gang goes to Paris to search for the shrine, where it has fallen into the hands of an evil psychic.
After a padre in Mexico hides the shrine in a Mayan temple, it's up to Mr. Miyagi to keep it out of the hands of Madero, an evil bandit.
Miyagi tracks the shrine down to a movie lot where its power enters the sword of an actor playing King Arthur, causing him to believe he is the evil Black Knight.
Miyagi and company follow the magic rainbow to a mountain paradise in the Himalayas, where a magic 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 Ishidas causes the shrine to become lost once again.
Mr. Miyagi and friends follow the shrine to Australia, where a tribe of Aborigines believes it should be offered to the god of the volcano.
Mr. Miyagi, Daniel and Taki travel to the Soviet Union where Professor Kirov is studying the shrine's magical powers.
Mr. Miyagi has traced the shrine down to the coast of Norway, where a whale has swallowed the shrine and begins to attack 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 to the shrine.
Miyagi and friends discover that the shrine has fallen into the hands of a lonely boy, who is using it to make his own little world.