Daniel befriends Ali Mills, an attractive high school cheerleader, which draws the attentions of her arrogant ex-boyfriend Johnny Lawrence, a skilled practitioner and top student from the "Cobra Kai" dojo, where he studies an unethical and vicious form of karate. Johnny and his Cobra Kai gang continually torment Daniel, savagely beating him up on Halloween until Mr. Miyagi intervenes and single-handedly defeats them with ease. Amazed, Daniel asks Mr. Miyagi to teach him karate. Miyagi refuses, but agrees to bring Daniel to the Cobra Kai dojo to resolve the conflict. They meet with the sensei, John Kreese, an ex-Special Forces Vietnam veteran who callously dismisses the peace offering. Miyagi then proposes that Daniel enter the All-Valley Karate Championships, where he can compete with Johnny and the other Cobra Kai students on equal terms, and requests that the bullying cease while Daniel trains. Kreese agrees to the terms, but warns that if Daniel does not show up for the tournament, the harassment will continue on both Daniel and Miyagi.
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