We go straight into the fallout of Tory joining Cobra Kai (CK) and the shock that Miyagi Do (MD) face towards her and Kreese. After the intro to the tournament Jonny and Daniel approach her, but are maniacally intercepted by Kreese who says usual Kreese things and threatens them with criminal smoothness.
MD are out of sorts as the team part of the challenge begins. CK dominate in nearly every field whilst MD start to question if they even belong and relationships are being strained. Robby can only focus on Tory, Miguel and Sam constantly argue. Hawk and Dimitri can barely look at each other and Devon feels constant guilt and out of place and believes it all to be her fault. This causes contention, again, between Jonny and Daniel. Kreese trying one more time to have Jonny take his place by his side as head of CK. Surrounded by questions, he gets a phone call from home. There's trouble with Carmen and the baby, (possibly a threat of Esteban searching for her). He has to leave, Devon confesses her sins to Jonny and demands she return to the states with him. They tell Daniel who contacts Chosen/Barnes for reinforcements, upon hearing the news and Barnes feeling cheated, he brings Kenny with him to Barcelona to rightfully take the place of Devon. (At home, Kenny had been constantly torturing Anthony again believing him to be the problem, worried that Amanda can't protect Anthony, she flies to Spain with Anthony to be near Daniel, and help with the rest of the investigation into Mr Miyagis past.
With MD in a spiral leading into the second day of the team challenge. They are approached by Sensai Julie Pierce, as she recognises the MD name and logo, and shares with Daniel her stories of Mr Miyagi. She helps the whole team recreate their bond and stay strong and united as they proceed into the competition. The only dark horse is Kenny, who doesn't care as much for the team as he does about winning. Even with him and secret meet ups with a mysterious man, that Robby tries to find out who. They all believe it to be Kreese as he tries to poach another Ex-Cobra to his strengthened team.
Meanwhile in camp CK, Kreese feels unstoppable and continues to be a mentor/father to Tory, and help her with her loss. The pride of Kwon is hard on the team and Tory, however Kreese loves it, this makes Kreese loose focus and he is constantly being stalked in the shadows. Kreese receives anonymous threats and letters. His paranoia is affecting the performance of the whole team. MD pull back some much needed points and sit top 4, CK still on the lead however it is getting very narrow.
Back home in America, Jonny is at the aid of Carmen as disaster is seemingly abound. Home life is being tortured by a mysterious assailant. This worries everyone, even to the point that Jonny tells Larusso he can't return, Daniel tells Miguel, who now, with all the contention between him and Sam anyway, decides to step down as captain of MD and return home to help his mother. Upsteps Robby as the new captain as we get ready to enter the single finals.
The season ends with the reveal that it is the return of Terry Silver. He has been stalking everyone and waiting for the right time. He has been mentoring Kenny. He has been stalking Kreese. He has been affecting team MD as well as Jonny back home. He even has his claws on Kwon, who sees Silver as a better leader than Kreese. This results in an all out brawl with many people involved with choreography similar to the large fight scenes in the school and Larusso house.
We end part two with bodies battered. Relationships broken. Silver standing tall as the master puppetier.
Part 3 will have the singles finals and the fall out of the tournament along with what life will be like as everyone goes their separate ways.