After discovering that his father is at death's door, Mr. Miyagi sets out to Japan, to see him with Daniel. Upon arriving, Miyagi must confront an old rival. Meanwhile, Daniel encounters a new love, and some new enemies.
Daniel moves to Los Angeles with his mother, Lucille, and soon strikes up a relationship with Ali. He quickly finds himself the target of bullying by a group of high school students, led by Ali's ex-boyfriend Johnny, who study karate at the Cobra Kai dojo under ruthless sensei, John Kreese. Fortunately, Daniel befriends Mr. Miyagi, an unassuming repairman who just happens to be a martial arts master himself. Miyagi takes Daniel under his wing, training him in a more compassionate form of karate for self-defense and later, preparing him to compete against the brutal Cobra Kai.
Nacho Libre is loosely based on the story of Fray Tormenta ("Friar Storm"), aka Rev. Sergio Gutierrez Benitez, a real-life Mexican Catholic priest who had a 23-year career as a masked luchador. He competed in order to support the orphanage he directed.
A lost penguin rescued from an oil spill transforms the life of a heartbroken fisherman. They become unlikely friends, so bonded that even the vast ocean cannot divide them.