John Kreese threatens Daniel with war after Miyagi Do takes some Cobra Kai students, leaving Daniel feeling he must prepare his students for when the fight comes to them. Meanwhile Kreese has organised an old school training exercise at Coyote Creek for the Cobra's behind Johnny's back. Miguel discovers who trashed Miyagi Do. He recovers and returns the Medal of Honour to Robbie. Robbie and Sam can't avoid their feelings towards each other anymore, but Robbie decides to keep the news of the return of the medal from Sam.