1989 · United States - John G. Avildsen
The story picks up almost a year after the first film, and following the events of the sequel. Having lost the Cobra Kai dojo and all of his students, Sensei John Kreese (Martin Kove) visits his Vietnam War comrade Terry Silver (Thomas Ian Griffith), who is also a karate expert and fellow Cobra Kai; indeed, he is later indicated to be the majority owner of the Cobra Kai dojo. Silver and Kreese scheme to take revenge on Daniel and his teacher, Mr. Miyagi (Noriyuki "Pat" Morita), and make Cobra Kai successful once again. Terry sends Kreese to Tahiti to get rested up and get his life back in order.