In the season finale we witness the annual All Valley Under-18 Karate Championship. Cobra Kai returns with a full team led by Miguel. Robby too participates as a fighter unaffiliated with any dojo. Things go well for Cobra Kai with Miguel and Hawk advancing to the semifinals. A cheap shot from Hawk to Robby in the semifinals dislocates Robby's shoulder and Hawk is disqualified. Daniel approaches Robby and advises him to find balance in his life by letting go of his anger toward his father. After talking to Aisha, Samantha confronts Miguel and they end up arguing again. Upset, Samantha leaves the tournament and finds herself back at the family dojo where it becomes apparent that she still possesses impressive karate skills. Daniel assists Robby back into the ring and agrees to him fighting as a member of Miyagi-do Karate with Daniel as his coach. Miguel quickly realizes that Robby's shoulder is injured and targets it to get the win 3–2 and Johnny realizes that Miguel has been corrupted by his teachings. After the match, Daniel takes Robby to Mr Miyagi's old home and reveals that he plans to use it as a dojo to continue Robby's training and teach others Miyagi-do karate in order to defeat the Cobra Kai. Meanwhile, at the Cobra Kai dojo Johnny gets drunk but seems unhappy. He hears someone enter the dojo and is confronted by a shadowy figure praising him for getting Cobra Kai back on top again. The figure is revealed to be Kreese who ominously says the real story of Cobra Kai has only just begun.