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After learning that his father is dying, Mr. Miyagi (Noriyuki ‘Pat’ Morita) returns home to Okinawa, Japan, bringing his protege, Daniel LaRusso (Ralph Macchio), with him. In Japan, Miyagi is surprised to discover that his old sweetheart, Yukie (Nobu McCarthy), has remained single. Meanwhile, Daniel is attracted to Yukie’s niece, Kumiko (Tamlyn Tomita). But, romance must be put on hold while Daniel and Miyagi deal with local bullies and long-harboured grudges.